dYdX Launches Token Buyback Program to Improve Security and Increase Usefulness

dYdX, a decentralized exchange platform, has launched a buyback plan setting out to improve the security of the token and further increase

Decentralized exchange platform dYdX has announced a buyback plan to increase the token's security and improve its usefulness.

More than 85 percent of the dYdX tokens have already been unlocked and are circulating in the market. The buyback program will add more value to the ecosystem.

On March 24, dYdX disclosed that it will use 25 percent of its monthly net fees to buy dYdX from the market and stake it to further improve network security. If the project goes smoothly, this amount “staked” could increase to 100 percent of revenue.

Following the news release, dYdX Token rose almost 7 percent to a high of $0.72, despite the fact that it lost over 78 percent in the past year. This program is said to help strengthen investors' confidence in the token and further reinforce its role in the platform's economic system.

Previously, all the earnings from dYdX went to members of the ecosystem, but with the new buyback program, changes would be made to the distribution. Now, 40 percent goes to staking rewards, 25 percent each to the MegaVault and buybacks, and the other 10 percent goes to the Treasury SubDAO for financial stability.

This setup aims to reinvest more money into the ecosystem, which helps improve security, governance, and foster long-term growth. While the program currently uses 25 percent of net fees for buybacks, more discussions are ongoing about raising this amount to 100 percent.

How The Buy Back Program Strengthens dYdX Tokenomics

The Buy Back Program strengthens DYDX tokenomics as it comes closer to its release schedule. By March 1, 2025, 85 percent of dYdX tokens had already been issued, with emissions set to drop by half from June 2025.

Since 2021, after dYdX launched, it has advanced in adoption, with all releases expected to end by June 2026. A major change occurred in 2023 when the network moved from Ethereum to its own Layer 1.

As of the time of writing, 86 percent of tokens exist on dYdX Chain, while the other 14 percent remain on Ethereum as ethDYDX. The community has suggested ending support for the cross-chain bridge in June 2025, which could possibly remove unbridged ethDYDX from circulation permanently.

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