DYDX climbs 10% as 25% of fees go to token buybacks
Decentralised finance platform dYdX (CRYPTO:DYDX) has launched its first token buyback program, committing 25% of its net fees to monthly buybacks.
The announcement on March 24 led to a more than 10% increase in DYDX’s price, which reached approximately $0.731, according to CoinGecko.
The token has gained over 21% in the past two weeks.
Under its new revenue model, dYdX will allocate 25% of its net fees to token buybacks, 25% to its USDC liquidity provision program MegaVault, 10% to the treasury, and 40% to staking rewards.
The platform stated that the percentage for buybacks could increase in the future, depending on community discussions.
The platform, which facilitates decentralised derivatives trading, reported a total value locked (TVL) of $279 million, according to DefiLlama.
It generated $1.29 million in fees in February and $1.09 million in March so far.
dYdX Foundation CEO Charles d’Haussy expressed optimism about the future of decentralised finance, predicting that another significant growth period could begin after summer.
“It will likely start around September and last for months and months,” he said in an interview.
Founded in 2020, dYdX initially focused on spot trading, lending, and margin trading before gaining traction in 2021 with the launch of its layer-2 perpetual futures exchange and DYDX token.
According to the platform’s 2024 ecosystem report, the decentralised derivatives market is projected to grow to $3.48 trillion by 2025, compared to $1.5 trillion in derivatives volume recorded in 2024.
At the time of reporting, the dYdX (DYDX) price was $0.7207.
