dYdX

The dYdX community voted in favor of launching the first-ever DYDX buyback program, reinforcing its long-term commitment to strengthen the DYDX token’s alignment with platform’s long-term growth and network security. Starting March 24, 2025, 25% of net protocol fees will be used to purchase DYDX from the open market every month, with active governance discussions considering an increase up to 100% over time. This initiative strengthens DYDX’s tokenomics by reducing circulating supply and aligning token holders with dYdX’s continued growth. With over $270B in trading volume in 2024 and a rapidly expanding ecosystem, the buyback program marks a major milestone in dYdX’s evolution as the leading decentralized trading platform.

What Is dYdX ?

dYdX is DeFi’s pro trading platform and a pioneer in decentralized finance, known for being the first to offer decentralized margin trading and derivatives, as well as inventing flash loans and DEX aggregators in 2018. Built on a custom Layer-1 blockchain using the Cosmos SDK, dYdX provides a professional-grade, decentralized trading experience with high leverage, deep liquidity, and low fees. Governed by the community through the DYDX token, dYdX is focused on delivering a transparent and user-driven financial system. This November, dYdX Unlimited launches, bringing instant market listings, the MegaVault liquidity engine, revamped trading rewards, and lifetime affiliate commissions, setting a new standard for decentralized trading.

What Is dYdX Chain DYDX ?

The dYdX Chain is a proof-of-stake blockchain network built using the Cosmos SDK and leveraging CometBFT for consensus. The DYDX token is the L1 protocol token for the dYdX Chain, as agreed by the dYdX community through dYdX governance (Snapshot vote and an on-chain vote)

Holders of the DYDX token can use their tokens to run a Validator or stake their tokens to a Validator in order to participate in securing and governing the dYdX Chain network.

dYdX Chain (DYDX) Tokenomics

Learn more about DYDX tokenomics, and view project details below and read through this Token Mechanics blog.

What is the Allocation for DYDX?

DYDX is distributed to users by validators on the dYdX Chain on a 1-1 proportional basis based on the amount of Ethereum-based DYDX (ethDYDX) that each user sends to the wethDYDX Smart Contract.

The allocation of DYDX is based on the allocation of ethDYDX. The allocation of ethDYDX changed since its launch on August 3, 2021 due to several governance proposals. The updated allocation of ethDYDX:

• 27.7% is allocated to Investors
• 15.3% is allocated to Employees and Consultants of dYdX Trading or Foundation
• 7.0% is allocated to Future Employees & Consultants of dYdX
• 14.5% is allocated to User Trading Rewards
• 5.0% is allocated to Retroactive Rewards
• 3.3% is allocated to Liquidity Provider Rewards
• 26.1% is allocated to Community Treasury
• 0.6% is allocated to Liquidity Staking Pool
• 0.5% is allocated to Safety Staking Pool

Source: dYdX Documentation