dYdX Approves Massive Buyback: 75% of Protocol Fees Diverted to Token Purchase!

Updated

November 14, 2025

Gambar dYdX Approves Massive Buyback: 75% of Protocol Fees Diverted to Token Purchase!

Jakarta, Pintu News – The dYdX community has approved the results of a governance vote to divert a significant portion of protocol revenue to the DYDX token buyback program.

Starting November 13, 2025, 75% of the protocol fee will be used for open market buybacks, a significant increase from the previous allocation of 25% set at the beginning of 2025.

dYdX Buyback Program Voting Reaches 59.38%

According to a report from Nethermind Research published on the dYdX governance forum, this move is aimed at creating buying pressure and responding to token price weakness.

Nethermind, which received a grant from dYdX to analyze incentives, highlighted MegaVault’s poor performance-generating a negative annualized return of 16.7% without incentives-as a reason for the need to reallocate funds.

“At current prices, the protocol could potentially buy back up to 5% of the total token supply annually. Historical analysis of buyback announcements on DeFi protocols shows a positive market response, with an average token price increase of 13.9% after the announcement,” Nethermind Research explained. “Increasing the buyback allocation from 25% to 75% will strengthen the token’s economic structure while sending a signal of confidence to the market.”

The vote recorded on Mintscan showed an approval rate of 59.38%, with over 89 million DYDX tokens supporting the proposal. The vote took place from November 11 to 13.

A full discussion regarding this proposal has been conducted on the dYdX forum since October 30, where Nethermind explained that a threefold increase in the buyback allocation could result in a positive impact on the market, referring to DeFi’s historical cases showing an average 13.9% increase in token prices after similar announcements.

However, one thing that is yet to be clarified is whether the repurchased tokens will be burned or kept in a specific treasury account.

will you burn it after buybacks ???
— Ar$ (@universgroup13) November 13, 2025

DYDX Experimental Buyback and Uniswap Fee Changes

According to a CoinSpeaker report, this approval follows a three-month experimental buyback plan announced by dYdX on October 29. The initiative aims to test the effectiveness of buybacks funded from protocol cash in maintaining token value.

Several other DeFi projects have taken similar steps, such as ether.fi’s $50 million community buyback proposal and Aave’s $1 million weekly program that started on April 18.

Today, I’m incredibly excited to make my first proposal to Uniswap governance on behalf of @Uniswap alongside @devinawalsh and @nkennethk

This proposal turns on protocol fees and aligns incentives across the Uniswap ecosystem

Uniswap has been my passion and singular focus for… pic.twitter.com/Ee9bKDric5
— Hayden Adams 🦄 (@haydenzadams) November 10, 2025

This series of initiatives reflects a change in strategy within the DeFi sector, including Uniswap’s UNIfication proposal that triggered a 30% surge in UNI prices, as also reported by Coinspeaker in early November. The proposal activates a fee distribution mechanism (fee switch) to provide returns to token holders.

As of November 14, 2025, the price of DYDX stood at $0.32-a 75% decrease compared to the previous year, but a 4% increase in the last 24 hours according to data from CoinMarketCap.

Analysts note that the buyback program could ease supply pressure due to token inflation, especially if protocol revenues stay in the range of $20 million per year. This could potentially support a recovery in token value in the coming months.

FAQ

What is DYDX?

DYDX is a token used in the DeFi protocol that focuses on derivatives and margin trading.

When will the DYDX buyback start?

DYDX token buybacks will begin on November 13, 2025, following the community’s decision to increase the allocation of funds from protocol revenue.

What percentage of DYDX protocol revenue will be allocated for buyback?

A total of 75% of DYDX protocol revenue will be allocated for token buybacks on the open market.

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