dYdX Announces 3-Month Experimental Token Buyback Plan

The dYdX community has revealed a proposal for a three-month experimental buyback program to strengthen the DYDX token’s price.

Starting November 1, 2025, and running through January 31, 2026, the trial will allocate protocol’s net transaction fees toward repurchasing DYDX tokens.

Estimates suggest that between $5 million and $10 million worth of tokens could be bought back during this period. The initiative aims to improve value accrual for tokenholders and test the protocol’s overall capital efficiency.

Validator and staker rewards, typically drawn from a share of trading fees, will use the Community Treasury, which holds over $100 million in assets. This makes sure that network security and validator incentives remain intact while the fee allocation is redirected to buybacks.

This experiment follows the initial DYDX Buyback Program launched in March 2025, which used 25% of trading fees for token repurchases. That program has already resulted in over 5 million DYDX tokens being bought from the market.

The new proposal builds upon this foundation, inspired by platforms like Hyperliquid HYPE $49.07 24h volatility: 2.5% Market cap: $13.25 B Vol. 24h: $662.54 M , where nearly all fees are used to support the token.

Evaluating DYDX Market Impact

Currently, dYdX Chain distributes its net trading fees as follows: 25% to buybacks, 40% to staking rewards, 25% to Megavault liquidity, and 10% to the treasury.

The new proposal temporarily shifts that distribution to 100% buybacks, while maintaining reward payments from treasury reserves.

The community aims to use this trial to gather data on price performance, market cap efficiency, and investor sentiment.

If successful, the experiment could strengthen DYDX’s position as a leading decentralized trading protocol and become a more sustainable token model.

Once the trial ends, the original fee distribution will automatically resume unless governance votes to extend or adjust it further.

Earlier this year, dYdX announced its first-ever external acquisition, purchasing Pocket Protector, a crypto social trading platform.

As of writing, DYDX is trading around $0.3308 with a market capitalization of $262 million, down nearly 68% over the past year. The token has shed about $1.43 billion in value, largely due to ongoing and upcoming token unlocks.

Supporters believe the proposed buyback plan could improve DYDX’s price performance. This potentially puts the token as top penny crypto to buy in 2025.

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