dYdX Approves 75% Revenue Buyback for DYDX Tokens Ahead of US Debut

• The proposal triples buyback rates, redirecting 75% of fees to repurchase and stake DYDX tokens immediately.

• This shift enhances long-term holder incentives while reducing circulating supply to support price stability.

• With over $1.5 trillion in trading volume, dYdX’s US expansion aligns with favorable regulatory changes, cutting fees to attract more users.

Discover how the dYdX buyback proposal triples token repurchases to 75% of revenues, driving value and US market entry. Explore impacts on DYDX price and staking yields today.

What is the dYdX Buyback Proposal?

The dYdX buyback proposal represents a pivotal governance decision by the decentralized exchange platform to allocate 75% of its net protocol revenues toward repurchasing and staking DYDX tokens, up from the previous 25%. This change, approved on November 13 by 59.38% of voters under proposal #313, aims to strengthen token economics by linking rewards directly to trading activity. It immediately enhances buyback pressure, potentially reducing circulating supply and supporting price appreciation amid the platform’s growth.

The dYdX platform has approved a major governance proposal to dramatically increase the allocation of net protocol revenue and buy back DYDX tokens, shifting from the previous 25% to a new 75%. The updated buyback allocation forms part of a broader strategy to enhance value capture, staking yield, and governance participation, directly linking tokenholder incentives to platform performance.

How Does the dYdX Buyback Upgrade Impact Token Holders?

The dYdX buyback upgrade fundamentally alters revenue distribution, with 75% of protocol fees now dedicated to open-market DYDX purchases and subsequent staking. Previously, only 25% went to buybacks, while the rest supported operations and treasury needs. This adjustment, effective immediately, is projected to triple buying pressure on the token, fostering scarcity and potentially elevating its market value.

Under the new framework, 5% of revenues will flow to the Treasury SubDAO for ecosystem development, and another 5% to the MegaVault for strategic reserves. The dYdX Foundation confirmed this via a public announcement on X, stating, “Starting today, 75% of protocol fees will be used to buy back DYDX on the open market.” This move builds on the initial buyback program launched in March 2025, timed with the v4 mainnet transition and emission reductions planned for June 2025.

Experts in decentralized finance note that such aggressive buyback strategies can significantly bolster token utility. For instance, analysts from blockchain research firms highlight that protocols with high revenue-to-buyback ratios, like this one, often see improved staking yields—potentially rising above 10% annually based on current fee generation. The platform’s cumulative trading volume exceeding $1.5 trillion underscores its revenue potential, with fees from perpetuals and derivatives driving the majority of inflows.

Token holders stand to benefit through compounded staking rewards, as repurchased DYDX is locked into staking pools, increasing APY for participants. Governance participation also gets a boost, as aligned incentives encourage more active voting on future proposals. Data from on-chain explorers like Mintscan shows that prior buybacks have already trimmed circulating supply by several million tokens, setting a precedent for sustained deflationary pressure.

Frequently Asked Questions

What triggered the approval of the dYdX buyback proposal in 2025?

The dYdX buyback proposal was approved on November 13, 2025, by 59.38% of community voters under governance proposal #313, reflecting strong support for enhancing token value amid platform growth. It addresses previous limitations in revenue allocation, prioritizing buybacks to reward holders and align with v4 mainnet objectives.

How will dYdX’s US market entry affect the buyback proposal?

dYdX’s upcoming US debut, planned for later in 2025, complements the buyback proposal by expanding user base and trading volume, which directly fuels fee revenues for token repurchases. President Eddie Zhang emphasized accessibility in the US, with halved fees to 50-65 basis points, focusing initially on spot trading while eyeing perpetuals under evolving regulations.

Key Takeaways

• Increased Buyback Allocation: The shift to 75% of revenues for DYDX buybacks triples pressure on the token, reducing supply and supporting price stability.
• Platform Growth and Revenue: Surpassing $1.5 trillion in trading volume positions dYdX to generate substantial fees, enhancing staking yields for holders.
• US Expansion Strategy: Entry into the US market with reduced fees and spot trading offerings could accelerate adoption, indirectly boosting the buyback program’s effectiveness.

Conclusion

The dYdX buyback proposal marks a strategic evolution in decentralized exchange governance, elevating revenue allocation to 75% for token repurchases and staking to drive long-term value. As the platform prepares for its US debut amid supportive regulatory shifts, including fee reductions and expanded offerings, DYDX holders can anticipate stronger incentives tied to real performance metrics. This positions dYdX as a leader in the derivatives space—stay informed on upcoming developments to capitalize on these opportunities.