dYdX Community Vote Passes: 75% of Protocol Fees Now Allocated to DYDX Buybacks

The dYdX community vote has overwhelmingly approved a landmark governance proposal, redirecting 75% of protocol revenue toward buying back and staking DYDX tokens. This decision, effective November 13, 2025, triples the previous 25% allocation, aiming to tighten supply and boost token value amid the platform’s $1.5 trillion cumulative volume milestone.

The Proposal: From 25% to 75% Buyback Allocation

Proposal #313, introduced by the dYdX Foundation and Nethermind Research, passed with 59.38% approval from over 89 million DYDX tokens in favor. The update shifts the majority of net protocol fees to open-market repurchases, with 5% directed to the Treasury SubDAO and 5% to MegaVault. This aggressive reallocation addresses MegaVault’s negative 16.7% annualized returns and creates sustained buying pressure, potentially repurchasing up to 5% of DYDX’s total supply annually at current prices.

The dYdX team confirmed on X: “Starting today, 75% of protocol fees will be used to buy back DYDX on the open market.” This follows a three-month experimental buyback launched in October 2025, building on similar strategies from ether.fi ($50 million community buyback) and Aave ($1 million weekly program).

• Approval Rate: 59.38%; over 89M DYDX in favor.
• Effective Date: November 13, 2025.
• Revenue Split: 75% buybacks, 5% Treasury SubDAO, 5% MegaVault.

Why the Change? Tightening Supply and Signaling Confidence

The proposal responds to DYDX’s 75% year-over-year decline to $0.32, despite the platform’s rapid growth on its Cosmos-based chain. Cumulative trading volume has surpassed $1.5 trillion, with the exchange preparing for a U.S. market debut and fee reductions on select perpetual pairs. By tripling buybacks, the community aims to create deflationary pressure, with historical DeFi announcements showing 13.9% average token outperformance post-vote.

Nethermind Research noted: “Tripling the allocation from 25% to 75% strengthens tokenomics while signaling confidence.” The measure enhances staking returns and reduces circulating supply, potentially accelerating appreciation as fees from $20 million+ annual revenue fuel repurchases.

DYDX Token Reaction: +4% to $0.32 Amid Broader Market Dip

DYDX jumped 4% to $0.32 in the 24 hours following the vote, bucking a 2.3% market dip with $22.1 million volume and $238.66 million market cap (#238 rank). The token’s 2.3% daily volatility reflects optimism, but year-to-date -75% underscores the need for sustained revenue. Staking yields now stand at 5-7% APY, with buybacks expected to add 10-15% annual supply reduction.

Implications for dYdX: U.S. Debut and Fee Reductions

The buyback ramp-up coincides with dYdX’s U.S. launch later in 2025 and campaigns to eliminate maker/taker fees on select pairs, boosting liquidity. As perpetuals volume hits $279.5 billion monthly, the protocol’s $1.15 billion TVL positions it for DeFi dominance. The vote signals maturation, tying revenue directly to token demand and potentially catalyzing a recovery.

2025 DYDX Price Prediction: $1-$2 Consensus

DYDX price prediction for 2025 targets $1-$2, with 213-525% upside on buybacks. Changelly $0.80-$1.00; CoinDCX $1.50. Bull catalysts: U.S. expansion; bear risks: Volatility testing $0.20 support.

For investors, how to buy DYDX via compliant platforms ensures entry. How to sell DYDX and how to cash out DYDX offer liquidity. Sell DYDX for cash and convert DYDX to cash enable fiat conversions.

In summary, the dYdX community vote passing 75% protocol fee buybacks, effective November 13, tightens supply and signals confidence, unlocking $1-$2 DYDX potential in 2025’s DeFi surge.