dYdX Unveils Its First Token Buyback Program, Setting Aside 25% of Protocol Fees to Repurchase DYDX Tokens

Decentralized trading platform dYdX unveiled its first token buyback program, setting aside a quarter of its protocol fees to repurchase DYDX tokens on the open market.

Decentralized trading platform dYdX is introducing its first token buyback program. The platform will now use a quarter of its protocol fees to buy back DYDX tokens on the open market.

The move comes as 100% of dYdX’s income will now be distributed differently, with 25% going to token buybacks, another 25% to support its USDC-based MegaVault liquidity program, 10% to treasury and the remaining 40% to continue funding staking rewards.

Announcing the shift in its income distribution model, dYdX said the buyback share could grow over time, with ongoing community discussions possibly pushing it as high as 100%. The platform is actively shaping its token economics and governance.

Its February protocol revenue hit $1.29 million, with March already generating $1.09 million. The platform currently has $279 million in total value locked, according to DeFiLlama data.

The announcement sparked a 10.3% price surge for DYDX, which was trading at $0.731 at last glance. The move could help reduce circulating supply, a move often welcomed by token holders.

Earlier this year, dYdX also announced a major workforce reduction, as it laid off 35% of its team. This restructuring was yet another challenging moment for dYdX.

In March, dYdX CEO and co-founder Antonio Juliano temporarily stepped down from his leadership role. However, he returned in October to address the company’s strategic direction.

Despite being a major player in the decentralized finance (DeFi) space, dYdX is facing increased competition from other platforms, such as Hyperliquid, which has gained significant traction.

The layoffs at dYdX coincided with a similar restructuring move by Ethereum development giant Consensys, which announced a 20% staff reduction.