dYdX Community Approves Major Increase in Token Buyback to 75% of Protocol Revenue

The dYdX community has officially decided to increase its token buyback program significantly. Following the approval of proposal #313, the buyback allocation has jumped from 25% to 75% of net protocol fees. While this change reflects an optimistic shift in tokenomics, the DYDX token saw a decline of 3.53% on the day of the announcement and has dropped over 56% since September.

Key Takeaways

The dYdX community approved proposal #313 with a 59.38% majority, raising the token buyback allocation from 25% to 75% of net protocol fees.
Following the announcement, the DYDX token fell 3.53% to $0.3060 and has decreased by more than 56% since September.

The dYdX community has voted to significantly enhance its token buyback allocation, increasing it from 25% to 75% of net protocol fees. This important governance decision was announced on Thursday.

Proposal #313 received 59.38% approval after a three-day voting period that concluded on November 13, 2025.

dYdX proposal Source: dYdX Mintscan

This measure transforms how the decentralized derivatives exchange allocates its protocol revenue, establishing one of the most aggressive buyback programs within the DeFi space.

“Starting today, 75% of protocol fees will be allocated to buying back DYDX on the open market,” the dYdX team announced via social media shortly after the vote ended.

dYdX community approves massive buyback increase to 75% of protocol revenue

dYdX Team's Bold Move on Token Economics

This decision marks a significant departure from the initial buyback program introduced in March 2025.

The first program allocated only 25% of trading fees for token repurchases and already acquired more than 5 million DYDX tokens from the market. Under the revised structure, the protocol will now direct three-quarters of its revenue to open market acquisitions.

The remaining fees will be divided between the Treasury SubDAO (5%) and MegaVault (5%), while staking rewards will continue from previous allocations. Analysts anticipate that the protocol could buy back up to 5% of DYDX’s total supply each year at current price levels. Given that dYdX generated $46 million in net protocol revenue in 2024, this revamped buyback program could have a notable effect on the circulating supply.

Timely Strategic Decision

The dYdX community strategically initiated this change. By tripling the buyback allocation, the aim is to create a supply squeeze effect.

Nethermind Research, which backed the proposal, cited historical data indicating that DeFi tokens typically outperform by an average of 13.9% following announcements of buybacks. The firm reasoned that increasing the allocation “would enhance tokenomics while instilling confidence in the market.”

The tokens that are repurchased will be staked to validators for longer durations, thereby bolstering network security while keeping them out of active circulation.

Cautious Market Reaction

Despite this positive shift in tokenomics, the DYDX token was trading at $0.3060 at the time of this writing, reflecting a decline of 3.53% on the announcement day. The token has suffered from over a 56% decrease since September, dropping from about $0.70 to its current price.

DYDX price trend Source: TradingView

The muted response from the market suggests that traders are remaining cautious. However, the newly enhanced buyback program could offer support by accumulating tokens at these lower price levels.