The community of dYdX, a prominent DeFi trading entity, has announced a buyback program. As per dYdX, the platform’s community plans to carry out a $DYDX buyback to improve the role of the token in the DeFi sector. The platform revealed this development on its official account on social media.
dYdX Community Starts Buyback Program for $DYDX to Strengthen Ecosystem
The dYdX community is initiating the $DYDX buyback plan as a landmark development. Starting today, the plan intends to allocate twenty-five percent of the total protocol fees of dYdX for buying the $DYDX tokens. Hence, this percentage will be taken every month to purchase the tokens from the market. Then the community will stake the acquired tokens to boost the ecosystem security and benefit participation.
This initiative underscores a major step in enhancing the tokenomics of dYdX. Thus, it will directly connect the financial success of the platform to sustainability and strength of $DYDX. The systematic purchase and staking of $DYDX focuses on getting a positive feedback by facilitating validators, governance participants, and traders.
Apart from the buyback strategy, dYdX is broadening the capabilities thereof via Multi-Asset Margining, Spot Trading, and EVM support through IBC Eureka. The respective developments are anticipated to further improve the functionality of the protocol and attract a wider array of traders. Additionally, this program’s introduction denotes the protocol fees’ strategic reinvestment to increase network growth.
25% of Total Revenue to Cater to Buyback Plan
Before the buyback program’s launch, the cumulative protocol of dYdX was disseminated among the ecosystem participants. However, the latest revenue allocation structure includes 10% of the revenue for Treasury SubDAO, targeting financial sustainability projects. In addition to this, 25% caters to MegaVault and another 25% deals with the buyback plan. However, the remaining 40% focuses on staking rewards.
According to dYdX, the buyback initiative takes place at a noteworthy point in the token emission scheme of $DYDX. As of this month’s start, 85% of the overall $DYDX supply has been unlocked whale emissions are set to plunge by 50% from this year’s June. The token cumulative token unlocks will conclude by next year’s June, further strengthening the supply dynamics of the token in long term.
