dYdX initiates a buyback plan, pushing DYDX token up by 7%.

dYdX is implementing a buyback program that allocates 25% of protocol fees, with discussions on potentially increasing this to 100%.

The price of DYDX, the token for decentralized derivatives exchange dYdX, rose nearly 7% to $0.72 after the platform unveiled a new token buyback initiative. The program designates 25% of monthly protocol fees toward acquiring DYDX tokens from the open market.

This move aims to enhance the token’s role in network security and stabilize its economy, especially as DYDX has declined over 78% in value in the past year.

The new revenue allocation model directs 40% of protocol fees to stakers, 25% to the buyback program, 25% to the market-supporting MegaVault, and 10% to treasury initiatives.

According to a press release, dYdX recorded $46 million in net protocol revenue in 2024 from more than $270 billion in trading volume. Governance discussions are underway regarding the possibility of increasing the buyback allocation to as much as 100% of protocol fees.

A dYdX representative told CoinDesk that tokens acquired through the buyback will be staked “for an extended period to bolster network security.”

The supply of DYDX is also evolving, with token emissions set to decrease by 50% starting in June. Most DYDX tokens have already been unlocked, with the remaining tokens scheduled to vest by mid-2026, according to the press release.

Additionally, a governance proposal is under consideration that could remove unbridged Ethereum-based DYDX tokens from circulation if they are not transferred to the dYdX layer 1 by June.