dYdX has introduced a buyback program, allocating 25% of protocol fees, with discussions ongoing about raising it to 100%.

DYDX, the token of the decentralized derivatives exchange dYdX, surged nearly 7% to $0.72 after the platform announced its latest buyback initiative. The program commits 25% of monthly protocol fees to acquiring DYDX tokens from the open market.

The initiative is designed to reinforce the token’s utility in securing the network and supporting its economic structure, particularly after DYDX lost over 78% of its value in the past year.

Under the revised revenue allocation, 40% is designated for stakers, 25% for buybacks, 25% for the market-supporting MegaVault, and 10% for treasury-related initiatives.

A press release stated that dYdX generated $46 million in net protocol revenue in 2024 from more than $270 billion in trading volume. Governance discussions are underway to consider increasing the buyback allocation to as much as 100% of protocol fees.

Tokens acquired through the buyback will be staked for an “extended period to enhance network security,” a dYdX representative told CoinDesk.

DYDX’s tokenomics are also evolving, with emissions set to decline by 50% beginning in June. Most DYDX tokens are already unlocked, with the remaining tokens scheduled to vest by mid-2026, according to the press release.

Additionally, a proposed governance measure may remove unbridged Ethereum-based DYDX tokens from circulation if they are not transferred to the dYdX layer 1 by June.