The dYdX platform has approved a major governance proposal to dramatically increase the allocation of net protocol revenue and buy back DYDX tokens, shifting from the previous 25% to a new 75%.
The updated buyback allocation forms part of a broader strategy to enhance value capture, staking yield, and governance participation, directly linking tokenholder incentives to platform performance.
dYdX approves upgrade for buyback proposal
The proposal, numbered #313, was passed by 59.38% of community voters on November 13, and it marks one of the most aggressive revenue-to-buyback ratios among major decentralized protocols.
In the past, only 25% of net protocol fees were allocated to DYDX repurchases, with the remainder directed toward operational and treasury functions. The new move is expected to triple the buying pressure on the price.
As part of the newly passed framework, the protocol committed three-quarters of its fee revenue directly to buying and staking DYDX, while 5% will be sent to the Treasury SubDAO and 5% to the MegaVault.
“Starting today, 75% of protocol fees will be used to buy back DYDX on the open market,” the dYdX foundation confirmed on X.
dYdX first launched its buyback mechanism in March 2025, coinciding with the v4 mainnet migration and a planned reduction in emissions by June 2025. The new buyback policy takes effect immediately, and what will naturally follow is a significant reduction in the token’s circulating supply, which could instantly push the DYDX price into an upside trajectory.
dYdX prepares for its US debut
The decision to update its revenue-to-buyback ratios follows dYdX’s rapid growth across its standalone Cosmos-based chain, where cumulative trading volume recently surpassed $1.5 trillion. It also comes as the exchange gets ready for its US market debut later this year and continues its campaign to remove maker and taker fees on select perpetual pairs to boost liquidity depth.
The derivatives-focused exchange, which cuts out the middleman and allows users to transact directly on a blockchain network, was previously not available to American users. It recently surpassed $1.5 trillion in total trading volume since its inception, and Eddie Zhang, the company’s president, has revealed plans to expand its offerings by bringing spot trading on Solana and other linked cryptocurrencies to the US by the end of the year.
“It’s very important for us as a platform to have something available in the United States, because I think it represents, hopefully, the direction we’re trying to move in,” Zhang said.
The company’s decision to enter the US market may be linked to the friendly regulatory environment created by President Donald Trump’s embrace of the cryptocurrency sector this year. That embrace has led to the dismissal of several lawsuits against prominent crypto platforms and a shift by financial regulators to create specialized rules to accommodate digital assets.
Upon entering the US, dYdX will slash its trading fees by as much as half “across the board,” to between 50 and 65 basis points, Zhang said. According to him, perpetual contracts will not be available in the US, but it is not entirely off the table and may become a possibility if US regulators eventually provide guidance for decentralized platforms to be able to offer those products.
Already, the US Securities and Exchange Commission and the Commodity Futures Trading Commission have indicated they would consider allowing crypto perpetual contracts to trade across regulated platforms in the US, so that possibility continues to grow by the day.
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