Dydxthe token of decentralized derivatives exchange Dydx.
The move is part of a broader effort to boost the role of the security token and economic network model in the midst of a prolonged collapse for DYDX, which has lost more than 78% of its value in the last 12 months.
Buybacks marks a transition to how DYDX provides protocol revenue, with 40% going to stakers, 25% in the new program, 25% in support of the Megavault and 10% market to Treasury’s initiatives.
The exchange reported $ 46 million in net protocol income in 2024 from more than $ 270 billion in trading volume, according to a Press release. Management discussions are already exploring the possibility of increasing purchase sharing on almost 100% of protocol fees.
The tokens purchased as part of the program are set to be staked for “an extended time to improve network security,” a DYDX representative told CoinDesk.
The dynamic supply of the token is also moving, with emissions scheduled to drop in half starting in June. Most of the DYDX tokens are already locked, with the residue scheduled to invest in mid-2026, the press release said.
A pending proposal can also remove unarsed Ethereum -based tokens from circulation if not transferred to the DYDX 1 layer in June.
