dYdX Implements 75% Buyback: Synchronizing Holder Rewards with Platform Growth

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dYdX Implements 75% Buyback: Synchronizing Holder Rewards with Platform Growth

Bitget-RWA2025/11/13 16:38

By:Bitget-RWA

- dYdX community approved 75% protocol fee allocation for token buybacks, up from 25%, via a 59.38% voter majority on November 13, 2025. - The revised distribution aims to reduce DYDX supply, enhance scarcity, and align token holder incentives with platform performance through automated, transparent buybacks. - 5% of fees now fund Treasury SubDAO and MegaVault for ecosystem development, balancing supply reduction with staking incentives and research-driven growth. - Analysts highlight this as a DeFi govern

The

dYdX

community has voted to make a major change to how protocol revenue is distributed, now directing 75% of net fees toward token buybacks—an increase from the previous 25%. This proposal, which received 59.38% approval on the governance forum, was revealed on November 13, 2025, and

signifies a turning point in decentralized finance

treasury strategies. According to the updated plan, 75% of the protocol’s earnings will go toward purchasing DYDX tokens from the open market, while 5% each will be allocated to the Treasury SubDAO and the MegaVault to support ecosystem growth and staking rewards

based on research findings

This move demonstrates a deliberate strategy to better align token holder interests with the platform’s success. By linking buybacks directly to protocol revenues, dYdX intends to

decrease the available token supply

and increase scarcity, while also bolstering network security.

dYdX Implements 75% Buyback: Synchronizing Holder Rewards with Platform Growth image 0

This adjustment follows a broader overhaul of tokenomics that began in March 2025, which

featured planned reductions in token emissions

. The dYdX team highlighted that the higher buyback percentage will generate “continuous buying pressure,”

boosting trust in the token’s future value

Proposal 313 marks a shift away from conventional corporate buyback practices. Rather than relying on executive decisions as in centralized organizations, dYdX’s system is fully automated and open, with every transaction contributing to the buyback pool

according to analysis

. This setup ensures that all token holders benefit proportionally and puts governance power directly in the hands of the community. The distribution—75% for buybacks, 5% for the Treasury SubDAO, and 5% for the MegaVault—also

meets various ecosystem requirements

, striking a balance between reducing token supply and supporting development and staking initiatives.

Experts observe that this decision could influence future DeFi governance models. By

focusing on maximizing token holder benefits

through direct buybacks, dYdX is experimenting with a system where protocol achievements are directly reflected in token value. Nevertheless, there are still hurdles, such as the possibility of buyback-related volatility and varying levels of governance engagement. The structured allocation, which clearly divides resources between buybacks and development,

helps reduce certain risks

while allowing adaptability to changing market conditions.

The dYdX team shared the update on X, stating, "

Effective immediately, 75% of protocol fees will be allocated to buying DYDX on the open market

." This follows the buyback initiative launched in March 2025 and highlights the community’s ongoing efforts to optimize tokenomics. With token emissions set to decrease in June 2025, the expanded buyback allocation is part of a coordinated plan to further restrict supply and strengthen the protocol’s economic framework

according to recent reports

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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