Decentralized trading exchange dYdX has introduced a token buyback program to strengthen network security and enhance the utility of its native token, DYDX.
According to a March 24 announcement, the protocol stated that it would allocate 25% of its net monthly fees to buy DYDX tokens from the open market. These tokens will be staked to boost the network’s resilience directly.
dYdX hinted that the buyback allocation could expand in the future, potentially reaching 100% of protocol revenue if the program proves successful.
By launching this buyback program, dYdX joins other prominent DeFi projects adopting similar strategies. Leading DeFi protocols like Aave and Jupiter are also experimenting with buybacks to improve their token utility and market performance.
Revenue distribution model
Meanwhile, the buyback program has also prompted a reshuffle in dYdX’s revenue distribution model.
Under the new framework, staking rewards will claim 40% of total earnings, while the recently introdu
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