DYDX Token Rises 7% Following dYdX Buyback Program Announcement
DYDX token increased nearly 7% to $0.72 following the announcement of a buyback program, allocating 25% of monthly protocol fees for purchasing tokens on the open market.
Key points:
- The buyback aims to strengthen the token's role in network security and economic model.
- DYDX has declined over 78% in value in the past year.
- Revenue allocation: 40% to stakers, 25% for buybacks, 25% to MegaVault, 10% to treasury initiatives.
- The exchange reported $46 million in net revenue from over $270 billion in trading volume in 2024.
- Discussions are underway to increase buyback share up to 100% of protocol fees.
- Tokens acquired will be staked long-term for improved network security.
- DYDX emissions will halve starting in June, with most tokens already unlocked.
- A proposal may remove unbridged Ethereum-based DYDX tokens from circulation if not transferred by June.