dYdX’s buyback program fuels a 7% rally in DYDX token price.

dYdX is committing 25% of protocol fees to a buyback program, with governance discussions considering an increase to 100%.

The price of DYDX, the token of the decentralized derivatives exchange dYdX, climbed nearly 7% to $0.72 after the platform introduced a token buyback initiative. The program allocates 25% of monthly protocol fees toward purchasing DYDX tokens from the open market.

This strategic shift is intended to bolster the token’s role in network security and the broader economic model, particularly as DYDX has declined more than 78% in value over the past year.

Under the revised protocol revenue allocation, 40% is directed to stakers, 25% to buybacks, 25% to the market-supporting MegaVault, and 10% for treasury initiatives.

A press release revealed that dYdX generated $46 million in net protocol revenue in 2024 from over $270 billion in trading volume. Governance discussions are ongoing regarding increasing the buyback share to up to 100% of protocol fees.

According to a dYdX representative speaking to CoinDesk, tokens acquired through the buyback program will be staked for an “extended period to strengthen network security.”

The supply of DYDX is also evolving, with token emissions set to decrease by 50% starting in June. The majority of DYDX tokens are already unlocked, with the remaining portion scheduled to vest by mid-2026, according to the press release.

Additionally, a pending governance proposal could lead to the removal of unbridged Ethereum-based DYDX tokens from circulation if they are not transferred to the dYdX layer 1 by June.