Recently, the dYdX community governance forum proposed a noteworthy new proposal, which has sparked widespread discussion. The proposal suggests using all net trading fees generated by the dYdX chain for repurchasing DYDX tokens in the secondary market during a three-month trial period from November 1 of this year to January 31 of next year. If this bold value accumulation strategy is approved, it will make dYdX the first mainstream project in the Decentralized Finance (DeFi) space to directly use all protocol revenue for token buybacks.

The core argument of the proposal points out that currently dYdX allocates part of the trading fees to validators and stakers as rewards. Although this practice helps ensure network security and encourages long-term holding, it also leads to continuous inflation of the Token, diluting the value of existing holders. The proposal argues that if all fees were used for the buyback and destruction of DYDX Tokens, it would create deflationary pressure, directly driving up the market price of DYDX.

This proposal is undoubtedly a radical attempt aimed at maximizing the interests of token holders. However, it also raises a series of questions: Will this practice affect the long-term security of the network? Will it change the fundamental incentive mechanism of the project? What is the community's attitude towards this?

With the continuous development of the Decentralized Finance field, various projects are exploring the best value distribution models. This initiative by dYdX may provide new ideas for the entire industry, but its actual effects and potential risks still need further evaluation. Regardless of the final outcome, this proposal reflects the challenges DeFi projects face in seeking a balance between protocol revenue, Token value, and the healthy development of the ecosystem.