dYdX will allocate 25% of net protocol fees to the program, in addition to 40% of net fees going to stakers.
- dYdX community launches the first-ever $DYDX Buyback Program
- 25% of net protocol fees allocated to systematic monthly buybacks, enhancing network security
- Spot Trading and EVM Support set to expand dYdX’s capabilities, enabled by IBC Eureka
March 24, 2025 – The dYdX Community is launching the first-ever DYDX buyback program, reinforcing its long-term commitment to the DYDX token’s role in the ecosystem and the security of the network. Starting today, 25% of dYdX net protocol fees will be used to buy back DYDX tokens in the open market every month. The buyback program continues to promote dYdX’s commitment to its community, having shared 100% of its revenue with ecosystem members over the last year. Net protocol revenue is now distributed as follows:
- 10% – Treasury SubDAO for financial sustainability initiatives
- 25% – MegaVault
- 25% – Buyback Program
- 40% – Staking Rewards
DYDX holds untapped potential that may have been undervalued, and the first-ever buyback program in the DYDX token’s four-year history underscores the dYdX Community’s belief in the token’s prospects while further incentivizing tokenholders’ alignment with the ecosystem. While today marks the first step in the buyback program, there are active community discussions to potentially increase buyback allocation from net protocol fees to up to 100% over time. This ongoing governance conversation highlights the community’s role in shaping the protocol’s long-term economic model and underscores strong confidence in DYDX’s future.
In 2024 alone, dYdX generated over $270B in trading volume and $46M USDC in net protocol fees across 150 markets, pushing cumulative trading volume past $1.46T since 2021. With a growing base of over 57,000 DYDX holders, the new buyback program introduces a sustained, monthly effort to strengthen the DYDX token’s utility in the ecosystem.
Strengthening DYDX: Aligning the Token with Platform Growth
This initiative arrives at a pivotal moment for dYdX, as the protocol undergoes a major transformation with its most ambitious product roadmap to date. With dYdX Unlimited live since November 2024 and a fully reimagined mobile trading experience introduced in February 2025, the dYdX ecosystem is positioning itself to onboard the next million perpetual traders into DeFi.
This buyback program is a strategic initiative aimed at strengthening dYdX’s market leadership. Breakthroughs enabled by IBC Eureka are accelerating dYdX’s innovation pipeline, streamlining the launch of high-impact trading features and expanding the platform’s capabilities. dYdX’s roadmap includes Spot Trading, Multi-Asset Margining, and native Wallet integrations, all designed to dramatically drive new user adoption and expand the platform’s functionality.
As dYdX continues to scale, the community is focused on strengthening the connection between platform growth and the DYDX token, which is underscored by the longevity of the buyback program. While today marks the beginning of the program, the buyback initiative is slated to be a sustained, monthly effort to reinforce the role of the DYDX token in the ecosystem, with an ongoing commitment to growing dYdX’s financial commitment over time. As the leading decentralized derivatives exchange, dYdX is equipped with the resources and backing to ensure this is a long-term initiative in tandem with its community.
Enhancing DYDX Tokenomics: Supply, Unlocks, and Long-Term Alignment
As of March 1, 2025, 85% of DYDX tokens have already been unlocked, with emissions set to decrease by 50% from June 2025. Having launched in 2021, DYDX has reached a more mature stage in its adoption cycle, with all remaining token unlocks scheduled to conclude by June 2026.
The token ecosystem has already undergone one major transformation with the 2023 migration from Ethereum to the dedicated dYdX Layer 1. Currently, approximately 14% of ethDYDX tokens remain on Ethereum. The dYdX community has proposed discontinuing support for the cross-chain bridge in June 2025 on the dYdX Chain side, which could potentially result in the removal of any unbridged ethDYDX tokens from circulation on the dYdX Layer 1. Token holders of ethDYDX who do not interact with the wethDYDX Smart Contract before this deadline risk permanently losing the ability to convert their tokens to DYDX. More information is available here.
Meanwhile, approximately 190 million tokens, 19% of the total supply, remain in the dYdX Community Treasury, earmarked for future community-driven initiatives and protocol growth.
A Community-Led Commitment to Reducing Circulating Supply
All DYDX token-related changes—whether in rewards, distribution, or staking mechanisms—are determined by governance. We invite active participation in discussions and proposals.
As the buyback program takes effect, the dYdX community is already considering its potential expansion. Discussions are actively underway about the possibility of increasing the buyback allocation potentially to 100% of net protocol fees—a move that could significantly accelerate the reduction of DYDX’s circulating supply on the open market and contribute to improving the security and resiliency of the dYdX Chain network.