dYdX Triples Buyback Allocation to 75% of Protocol Revenue
2.8 Investments dYdX has tripled its buyback allocation, now dedicating 75% of protocol revenue to DYDX token repurchases. The move aims to boost demand, reduce supply, and strengthen tokenomics.
The dYdX community has approved a major change to its tokenomics, increasing the share of protocol revenue allocated to DYDX token buybacks from 25% to 75%. This adjustment, passed with 59.38% approval, aims to strengthen the link between protocol performance and token holder incentives, potentially reducing the circulating supply and increasing demand for DYDX. The new structure also allocates 5% of revenue each to the Treasury SubDAO and MegaVault. The buyback mechanism will now automatically use three-quarters of all protocol fees to purchase DYDX tokens on the open market, creating sustained buying pressure. This move is designed to address price weakness, support long-term value creation, and align token holder interests with platform growth. The community is still discussing whether repurchased tokens will be burned or held in treasury. The change is effective immediately and is expected to reinforce network security, reward long-term holders, and set a new standard for DeFi tokenomics.
