DYDX Approves 75% Protocol Revenue for Token Buybacks
The DYDX governance community voted to redirect 75% of protocol revenue toward open-market token buybacks, effective November 13, 2025. The change triples the previous 25% allocation and is explicitly framed as a response to recent price weakness, moving a large share of fee income from other uses into buyback support.
By shifting a bigger portion of protocol fees into buybacks, DYDX aims to create consistent buy-side demand and potentially reduce circulating supply, which could support token price dynamics over time. The actual market impact will hinge on fee generation, buyback cadence and liquidity conditions; stakeholders should watch upcoming treasury reports and buyback executions for signals on effectiveness. Governance approval underscores a trend of on-chain protocols using fee policy as a lever to align tokenholder value with protocol revenues.