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

Key Takeaways

What did dYdX governance approve?

The dYdX community passed proposal #313 with 59.38% approval, tripling the token buyback allocation from 25% to 75% of net protocol fees.

How has DYDX price reacted?

Despite the bullish tokenomics shift, DYDX fell 3.53% to $0.3060 on the announcement day and has plummeted over 56% since September.

The dYdX community has voted to triple its token buyback allocation. They increased from 25% to 75% of net protocol fees in a landmark governance decision announced on Thursday.

Proposal #313 passed with 59.38% approval after a three-day voting period that ended 13 November 2025.

Source: dYdX Mintscan

The measure reshapes how the decentralized derivatives exchange distributes its protocol revenue, marking one of the most aggressive buyback programs in DeFi.

“Starting today, 75% of protocol fees will be used to buy back DYDX on the open market,” the dYdX team announced on X shortly after the vote concluded.

dYdX team triples down on token economics

The decision represents a major shift from the original buyback program launched in March 2025. 

The initial program allocated just 25% of trading fees to token repurchases and has already purchased over 5 million DYDX tokens from the market.

Under the new structure, the protocol will funnel three-quarters of its revenue into open market purchases.

The remaining fees will be split between the Treasury SubDAO [5%] and MegaVault [5%], with staking rewards continuing from existing allocations.

Analysts project the protocol could repurchase up to 5% of DYDX’s total supply annually at current price levels.

With dYdX generating $46 million in net protocol revenue during 2024, the enhanced buyback program could significantly impact the circulating supply.

Strategic timing

The community timed this change strategically. The tripled buyback allocation aims to create a supply squeeze effect.

Nethermind Research, which supported the proposal, pointed to historical data showing DeFi tokens typically outperform by 13.9% on average following buyback announcements. 

The firm argued that tripling the allocation “would strengthen tokenomics while signaling confidence to the market.”

The purchased tokens will be staked to validators for extended periods, reinforcing network security while keeping them out of active circulation.

Muted market response

Despite the bullish tokenomics shift, DYDX traded at $0.3060 at the time of writing, down 3.53% on the day. The token has plummeted over 56% since September, falling from around $0.70 to its current levels.

Source: TradingView

The subdued reaction suggests traders remain cautious, though the enhanced buyback program could provide support by accumulating tokens at these lower prices.