dYdX Launches Monthly Token Buybacks, Driving Price Surge

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 unveiled its first-ever token buyback program, dedicating 25% of net protocol fees to repurchase DYDX tokens from the open market. The tokens will be staked rather than burned, with the goal of improving network security and reducing the circulating supply over time.

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

The initiative, passed by community vote, marks a shift in how dYdX allocates fees—splitting them among staking rewards, a MegaVault, the Treasury SubDAO, and now monthly buybacks.

The announcement also suggested that "discussions are already underway" for the buyback allocation to expand in the future, potentially reaching 100% of protocol revenue if successful.

The announcement coincides with broader protocol upgrades, including spot trading and EVM compatibility. Following the news, DYDX jumped more than 8%, briefly hitting $0.76 before stabilizing near $0.72. Trading volume surged over 270%, reflecting renewed investor interest in the platform’s long-term roadmap.