dYdX Proposes 3-Month Experimental Token Buyback Program
The dYdX community has proposed a three-month experimental buyback program starting November 1, 2025, to January 31, 2026. This initiative aims to enhance the DYDX token's value by allocating all net protocol fees towards repurchasing DYDX tokens.
- Estimated buyback range: $5 million to $10 million.
- The Community Treasury, with over $100 million, will fund validator and staker rewards, preserving network security.
- The proposal is inspired by similar models like Hyperliquid.
- This follows an earlier program that successfully repurchased over 5 million DYDX tokens using 25% of trading fees.
Market Impact
- Current fee distribution: 25% buybacks, 40% staking, 25% liquidity, 10% treasury.
- New proposal: 100% buybacks while maintaining rewards from the treasury.
- Goals: Analyze price performance, market cap efficiency, and investor sentiment.
- DYDX currently trades at $0.3308, with a market cap of $262 million, down 68% over the past year.
If successful, this could solidify DYDX's position in decentralized trading and improve its sustainability.