dYdX Foundation Completes Token Buyback Program Staking 2.86 Million DYDX

The dYdX Foundation has announced the successful completion of its token buyback program, which was launched in March. The foundation has repurchased a total of 2.86 million DYDX tokens, valued at $1.87 million, as part of this initiative. This program was implemented following community vote proposals #225 and #231, and was executed by Treasury SubDAO, a subsidiary of dYdX Treasury. The repurchased tokens are staked to support network security, with an additional 593,570 DYDX tokens set to be acquired in the next buyback round for the same purpose.

The buyback program utilizes 25% of the net transaction fees generated by the protocol each month. To date, 1.25 million DYDX tokens have been staked from these buybacks, increasing the total staked DYDX across the network to 295.39 million. The program provides an estimated annualized yield (APY) of 3.08% for DYDX tokens. The dYdX ecosystem generated a total of $5.05 million in protocol fees, with 25% of this revenue allocated to buybacks. This strategic move by the dYdX Foundation demonstrates its commitment to managing the token supply and potentially enhancing the value of the remaining tokens in circulation. The completion of this program marks a significant milestone for the dYdX Foundation and its community, signaling a proactive approach to token management and ecosystem development.