dYdX Launches Token Buyback to Boost Ecosystem Value
dYdX, a leading decentralized exchange, has introduced its first token buyback program to enhance the value of DYDX tokens. With 85% of DYDX tokens already unlocked, this move aims to inject confidence into the ecosystem.
Starting this week, 25% of the net protocol fees will be allocated to monthly buybacks. The dYdX team will purchase DYDX tokens from the market and stake them to bolster network security. This initiative is part of a broader reallocation of protocol revenue.
The new distribution plan includes:
- 10% for the Treasury subdao to support financial sustainability.
- 25% for the MegaVault.
- 25% for the Buyback Program.
- 40% for Staking rewards.
This strategic reallocation ensures that revenue is reinvested into the ecosystem, enhancing security, governance, and long-term sustainability. The community is also considering increasing the buyback percentage to up to 100% over time.
dYdX has faced meaningful changes recently. In October, several team members left, and CEO Antonio Juliano announced layoffs affecting 35% of the core team. Juliano stepped down as CEO in May 2024, with Ivo Crnkovic-Rubsamen taking over.
Despite these shifts, dYdX has achieved notable milestones.In 2024,it recorded $270 billion in trading volume has surpassed $1.46 trillion.
The buyback program is a strategic move as dYdX transitions from Ethereum to its own layer-1 chain. The market has responded positively, with DYDX tokens rising 7% to $0.7224. However, the token is still down 84% from its all-time high of $4.52, reached in March 2024.
