DYDX shoots up 10% as buybacks get a quarter of protocol revenue

Decentralized finance (DeFi) trading platform dYdX announced its first-ever token buyback program on March 24, aiming to reinvest in its ecosystem to enhance security and governance.

According to the announcement, 25% of the protocol’s net fees will be dedicated to monthly buybacks of its native dYdY (DYDX) token on the open market.

Following the announcement, DYDX surged over 10% and was trading at approximately $0.731 at the time of writing, according to CoinGecko. The token has gained more than 21% over the past two weeks.

DYDX spikes on buyback news. Source: CoinGecko

Related: dYdX explores sale of derivatives trading arm

New dYdX distribution model 

Previously, dYdX distributed 100% of its platform revenue to ecosystem participants. Under the new allocation model, 25% will be used for token buybacks, another 25% will fund its USDC liquidity provision program,

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