dYdX Introduces Monthly Token Buybacks, Boosting DYDX Price

The token buyback program hopes to strengthen network security and enhance the utility of its native token, DYDX.

Rebecca Denton

Mar 24, 2025 - 1 min read

Decentralized exchange dYdX has launched its first monthly token buyback initiative, allocating 25% of net protocol fees to repurchase DYDX tokens from the market. Instead of being burned, the repurchased tokens will be staked to strengthen network security and gradually reduce the circulating supply.

The first-ever $DYDX Buyback Program is here 🚨

Starting today, 25% of dYdX net protocol fees will be used to buy back DYDX tokens from the open market every month—reinforcing long-term commitment to the ecosystem.

More products. More growth. More value. pic.twitter.com/1XsD1uyb34
— dYdX (@dYdX) March 24, 2025

Approved through a community vote, the program represents a new approach to fee distribution, alongside staking rewards, the MegaVault, the Treasury SubDAO, and monthly buybacks.

The announcement noted that discussions are already in progress to potentially increase the share of protocol revenue used for buybacks—possibly up to 100% if the initiative proves successful.

The news aligns with broader updates to the protocol, including the introduction of spot trading and EVM compatibility. Following the announcement, DYDX rose by over 8%, briefly peaking at $0.76 before settling around $0.72. Trading volume spiked more than 270%, signaling renewed market interest in dYdX’s future plans.