Decentralized finance (DeFi) trading platform dYdX has launched its first-ever token buyback program, committing 25% of its net fees to repurchasing its native DYDX token from the open market. Announced on March 24, the initiative aims to strengthen the platform’s governance and security by reinvesting in its ecosystem.
Following the announcement, DYDX surged over 10%, reaching approximately $0.731, according to CoinGecko. Over the past two weeks, the token has gained more than 21%.
New dYdX Revenue Distribution Model
Previously, dYdX allocated 100% of its revenue to ecosystem participants. Under the new model:
- 25% will be used for token buybacks
- 25% will support the MegaVault USDC liquidity provision program
- 10% will go to the treasury
- 40% will continue as staking rewards
The platform also hinted at potential future adjustments, with community discussions exploring the possibility of increasing the buyback allocation to as much as 100% over time.
Currently, dYdX holds a total value locked (TVL) of $279 million, according to DeFiLlama. The protocol generated $1.29 million in revenue from fees in February and $1.09 million so far in March.
Is Another DeFi Boom Coming?
The DeFi space often refers to the “DeFi Summer” of 2020 as a golden era of rapid adoption, driven by yield farming and decentralized applications.
In a recent interview with Cointelegraph, dYdX Foundation CEO Charles d’Haussy predicted that the next major DeFi surge could begin in September, lasting for months.
Founded in mid-2020, dYdX initially focused on spot trading, lending, borrowing, and margin trading. Its popularity skyrocketed in 2021 after launching its layer-2 perpetual futures exchange and introducing the DYDX token.
According to its 2024 ecosystem report, dYdX forecasts that the decentralized derivatives market will expand to $3.48 trillion by 2025, up from $1.5 trillion in 2024.
