Decentralized exchange dYdX is taking steps to bolster its platform! They’ve just rolled out a token buyback program aimed at making their network even more secure and giving their DYDX token extra oomph.

In an announcement on March 24th, dYdX revealed their plan: they’ll be using 25% of their monthly net fees to purchase DYDX tokens right from the market. These freshly bought tokens won’t just sit around – they’ll be put to work by being staked, directly strengthening the network’s defenses.

dYdX is also hinting at the possibility of cranking things up down the line. If this initial buyback program proves to be a winner, they might increase the allocation to a full 100% of their protocol revenue!

This move from dYdX puts them in good company. They’re joining the ranks of other big-name DeFi projects that are also exploring buyback strategies. Think of leading DeFi names like Aave and Jupiter – they’re also experimenting with buybacks to give their tokens more appeal and boost their performance in the market.

Revenue distribution model

This new buyback program isn’t just a standalone feature; it’s also prompting a bit of a reshuffle in how dYdX distributes its revenue.

Going forward, the breakdown looks like this: staking rewards will take the lion’s share at 40% of the total earnings. The new MegaVault and this buyback initiative will each get a solid 25% cut.

And what about the rest? 10% will be directed to the Treasury SubDAO. This is the group responsible for ensuring dYdX is financially stable and can keep growing in the long run.

Good news for DYDX holders! Following the announcement, the price of the DYDX token saw a jump of over 8%, trading at around $0.73, according to data from CryptoSlate.

However, even with this recent positive bump, it’s worth remembering that DYDX is still a fair bit away from its all-time high of nearly $14.83. In fact, it’s still down roughly 78% from that peak.

DYDX tokenomics

This buyback announcement is arriving at a really interesting time in the story of DYDX’s token structure, or tokenomics.

dYdX explained that their community successfully made a big leap in 2023, moving from the Ethereum network to their very own Layer 1 blockchain, the dYdX Chain.

Since that switch, a large majority – about 86% – of DYDX tokens are now on this new network. However, there’s still around 14% hanging out on Ethereum as ethDYDX tokens.

Because of this split, dYdX has been actively encouraging users to move their ethDYDX tokens over to the new chain before June 2025. That’s when the bridge connecting to Ethereum might be shut down, and if that happens, any tokens left unbridged could become unusable.

As of March 1st, 2025, dYdX has stated they’ve already unlocked approximately 85% of the total supply of DYDX tokens. Looking ahead, from June 2025, the rate at which new tokens are released will be cut in half, with the final unlock of tokens expected in June 2026.

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