Decentralized trade exchange Dydx has introduced a token return program to strengthen network security and improve the usefulness of its native token, Dydx.
According to a March 24 announcementThe protocol stated that it would allocate 25% of its net monthly costs to buy Dydx tokens from the Open Markt. These tokens are used to directly stimulate the resilience of the network.
Dydx hinted that the repurchase allocation could expand in the future, making it possible to reach 100% of the protocol income if the program turns out to be successful.
By launching this repurchase program, DYDX agrees with other prominent Defi projects that use similar strategies. Leading Defi protocols such as Aave and Jupiter are also experimenting with Return to improve their token utility and market performance.
Income Distribution Model
In the meantime, the repayment program has also led to a recasting in the Investing Distribution Model of Dydx.
According to the new framework, setting up rewards will claim 40% of the total income, while the recently introduced Megavault and the return initiative will each receive 25%.
The remaining 10% goes to the Treasury Subdao, an entity responsible for financial sustainability and long -term growth.
After the announcement, the DYDX -token price climbed by more than 8%and traded around $ 0.73, according to CryptoSlate facts.
Despite this recent profit, however, DYDX remains considerably under its all time of almost $ 14.83, which represents a decrease of around 78%.
Dydx -Tokenomics
This repayment announcement comes on a critical point in the evolution of the Dydx tokenomics.
The protocol explained that the community had successfully switched from Ethereum to its adapted layer 1 blockchain, the Dydx chain, in 2023.
After the event, around 86% of the tokens live on the new network. About 14%, however, stays on Ethereum as Ethdydx -Tokens.
Because of this situation, the project users repeatedly insisted to migrate their Ethdydx -Tokens before June 2025 when the Ethereum bridge can be stopped. If you do not do this, not -bridge tokens can become inactive.
From 1 March 2025, the decentralized protocol stated that it has already unlocked approximately 85% of the total DYDX token stock. From June 2025 the token emissions will fall by 50%, with the last unlock planned for June 2026.
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