dYdX Governance Approves Buyback Increase to 75% of Protocol Revenue

The dYdX community has voted to increase the buyback allocation of protocol revenue from 25% to 75%. This decision, endorsed by 59.38% of community members, marks a significant shift in revenue distribution aimed at tying economic incentives directly to platform performance. The previous governance model allocated 25% of net protocol fees to buybacks of the dYDX token, which were then staked. The updated allocation plans also entail distributing 5% of protocol revenue to the Treasury SubDAO and another 5% to the MegaVault. This increase in buyback funds is part of a broader strategy to refine tokenomics, tighten the circulating supply, and enhance network security. The dYdX team announced that from now on, 75% of protocol fees will be utilized for open market buybacks of DYDX tokens, further aligning the financial interests of the protocol and its community.

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