dYdX Launches First Token Buyback, Dydx Jumps 10%

Decentralized trading platform dYdX unveiled its first token buyback program, setting aside a quarter of its protocol fees to repurchase DYDX tokens on the open market.

The move sent DYDX’s price climbing over 10%, trading around $0.731 at the time, according to CoinGecko.

Previously, 100% of dYdX’s income went directly to ecosystem participants. Under the revised model, 25% will go to token buybacks, another 25% will support its USDC-based MegaVault liquidity program, 10% will be routed to the treasury, and the remaining 40% will continue to fund staking rewards.

dYdX says the buyback share could grow over time, with ongoing community discussions possibly pushing it as high as 100%. The platform appears to be taking a more active role in shaping its token economics and governance.

February’s protocol revenue hit $1.29 million, with March already generating $1.09 million. The platform currently has $279 million in total value locked, according to DeFiLlama data.

The announcement sparked renewed interest in DYDX, which gained more than 21% over the past two weeks. The buyback could help reduce circulating supply, a move often welcomed by token holders.

dYdX rose to prominence in 2021 with its layer-2 perpetual futures exchange and native token launch, building on its earlier spot trading and lending services. The protocol has since carved out a leading position in the decentralized derivatives space.

dYdX forecasts that the decentralized derivatives market could hit $3.48 trillion in volume by 2025 — more than double the $1.5 trillion processed in 2024.

In 2024, dYdX announced a major workforce reduction, laying off 35% of its team. This restructuring was yet another challenging moment for dYdX. Earlier this year, CEO and co-founder Antonio Juliano temporarily stepped down from his leadership role, only to return in October to address the company’s strategic direction. Despite being a major player in the decentralized finance (DeFi) space, dYdX is facing increased competition from other platforms, particularly Hyperliquid, which has gained massive traction.

The layoffs at dYdX coincided with a similar restructuring move by Ethereum development giant Consensys, which also announced a 20% staff reduction.