Decentralized digital currency exchange dYdX increases buyback rate to 75% of protocol revenue

dYdX the protocol will allocate 75% of its revenue to buy back DYDX tokens on the open market, which is almost unprecedented in the DeFi space. Multiple analyses indicate that this buyback could absorb up to 5% of the total supply annually, causing significant token scarcity and pushing DYDX into the category of tokens supported by real revenue.

The dYdX community approved Proposal 313 with 59.38% voting in favor, officially approving an increase in the token buyback ratio from 25% to 75% of net revenue. The program will begin implementing the token buyback plan in March 2025.

Under the new distribution structure, the protocol’s net revenue will be allocated as follows:

75% to directly buy back DYDX on the open market, then stake it instead of leaving it idle.

5% for the operations, management, and strategy of the Treasury sub-DAO.

5% will be transferred to MegaVault — the fund is currently underperforming (annual return -16.7%) and requires a more reasonable compensation mechanism.

Currently, 85% of the revenue is used to service the ecosystem, rather than being in a “one-way” state as before.

Although the buyback news seems positive, the DYDX price still dropped sharply by 2% on the same day. The overall market trend during Friday and the weekend, and it has decreased by 56% since September 2025.

The price fluctuations of DYDX over the past year are shown in a screenshot from CoinGecko, timestamped at 10:30 AM on November 14, 2025.

This may stem from… the big question is whether the repurchased tokens will be burned. Currently, dYdX is only focused on token buybacks and staking, and has not announced a token burn strategy.

It is worth noting that dYdX’s move is not an isolated case. This month, the market has witnessed a wave of buybacks and burns initiated by major protocols totaling hundreds of millions of dollars, indicating a booming reorganization of token ecosystems across the industry. For example:

ether.fi ETHFI recently announced a $50 million token buyback plan — part of a larger $1.4 billion buyback effort aimed at increasing ETHFI’s value and improving staking performance.

Uniswap aims to overhaul its ecosystem, including enabling fee collection mechanisms, large-scale token burns, and merging two core organizations into one entity. Additionally, the project proposes retroactively burning 100 million UNI tokens currently stored in the Uniswap treasury, accounting for about 16% of the circulating supply, which is equivalent to the number of tokens that should have been burned if fee collection mechanisms had been enabled at the launch of UNI.