DXD Buyback Program [Signal Proposal]

Below is a signal proposal to approve a DXD buyback program that will repurchase up to $1m of DXD on the open market as long as the value of the DXD’s outstanding circulating supply is greater than the book value of the treasury. If the proposal passes, this announcement can be referenced with all relevant details.


REP holders launched DXD last year through a bonding curve smart contract. In this design, only product revenue drives DXD value accrual; DXD holders do not directly benefit from a rise in the value of DXdao’s treasury. This will change in the upcoming Governance 2.0 design, but the recent appreciation of ETH in the treasury has distorted the relationship between the economic value of DXdao and DXD.

Simultaneously, the long-term prospects of DXD and DXdao are strong, with a well-funded treasury and an emerging, diversified product suite. DXdao is set to launch an OMN token with Omen Guild governance capabilities, Swapr is rolling out on multiple chains and Mesa prepares for a v2 relaunch. DXD is positioned to rise in value over the coming years as these products and DXdao’s assets generate cash flow.

The community has debated the prospects of a DXD buyback for several months on calls, Keybase/Discord and in the forum. The community has reached soft consensus to move forward with the buyback program as a way to acquire an undervalued asset and reward DXD holders for the rise in the value of the treasury. This process can be carried out on Mainnet or xDai. In the future, DXdao may use a different relayer and on-chain method to complete the purchase.


The community has been working to enact the buyback program in a decentralized and transparent manner. Voting FOR this proposal signals support for the creation of the DXD buyback program as outlined below and in the supporting documents.

This announcement lays out the conditions of the program. To briefly summarize, DXdao is committed to purchasing up to $1m of DXD on the open market as long as the book value of the ETH and stablecoins in the treasury is larger than DXD’s outstanding circulating supply. These trades will be executed at a price that is 2.5% above DXD/ETH TWAP price at time of execution and will not exceed 25% of average trading volume.

Trades will use a Gnosis Protocol Relayer Contract (“GP Relayer”) deployed by the community to complete the trades. Each trade requires two proposals. One to send the ETH funds to the GP Relayer, and then a second proposal to set the order using the funds in the relayer at the price determined by the specified oracle. This technical explainer goes into greater detail on how the GP Relayer works.

Risks and Other Considerations

This is the first time that DXdao is considering purchasing DXD on the open market. It’s also the first time DXdao has used the GP Relayer on Mainnet. It has been audited and tested on xDai. There are additional risks given that this is a market trade that relies on an on-chain action.

This buyback program represents new ground for DAOs and DXdao intends to be as transparent as possible. The following documents have been created to provide additional information and context:

Disclosure: I (Caney Fork) hold DXD


[Edit] Updated links in announcement and technical explainer docs with the new relayer addresses


Signal Proposal has been submitted and boosted on main net

And xDai:


I’m really in favor of executing a buy back.
DXD holders deserve it given the huge treasury and depressed price of DXD.

I suggest to not specify in the proposal the specific execution solution for the buyback.
Execution on GPv1 might turn out to be suboptimal or unavailable at some point in the future…
And anyway the main signal is whether DXdao should do a DXD buy back or not


@cmagan I am pretty sure you meant to say execution on GPv1 might become unavailable. And definitely; it is clear that Gnosis is focusing on GPv2 and DXdao needs alternative means of executing the buyback besides GPv1.


Completely in favor of a buyback as it inherently adds value to DXdao by repurchasing assets for below their book value. This is one of the easiest ways to generate value for everyone and the treasury already possesses enough assets for many years of runway.


yeah, sure GPv1… fixed the original comment

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The buyback program was ratified by REP holders just over three weeks ago. Since then 7 buyback proposals have been executed and orders placed on Gnosis Protocol on xDai. In total, 332.8 DXD has been purchased at an average price of 0.1139 WETH/DXD price. The current market price for WETH/DXD is 0.135. See this spreadsheet for more details on the buyback.

  • The limit orders on Gnosis Protocol on xDai are hard to reach and many of the orders have gone unfilled.

  • Furthermore, the average DXD trading volume has not increased much since the buyback has started, so the buy orders have remained around ~$35k.

  • There has also been concern about the viability of GP v1 and whether another method could be used for the buyback.

  • There is also some clarification needed on how to calculate the $$$ purchases towards the $1m goal. So far DXdao has acquired 332.8 DXD, which is $124,556 using the current DXD price, but using the price at the time of the trade, it’s $103,971. This is because of DXD price appreciation and this difference may get larger is DXD continues to appreciate in dollar terms.

All of this has led to community discussion on updating parameters of the buyback program, so I wanted to gauge interest and prepare a proposal to authorize the changes. Please provide feedback on the questions below. We will also go over these on Wednesday’s Governance discussion and then can hopefully put a signal proposal soon after that.

Should the slippage % be increased?
  • Yes
  • No

0 voters

The slippage tolerance should be set at
  • 2.5% - stay the same
  • 3%
  • 4%
  • 5%
  • More than 5%

0 voters

Should DXdao governance authorize buybacks to take place on Swapr?
  • Yes
  • No
  • Yes, but with additional parameters for a market buy

0 voters

How should the $$$ value of DXD purchases be calculated?
  • Total DXD acquired * current DXD price
  • Use $$ price of DXD when the trade was filled
  • Use the $$ price of ETH when funding proposal was submitted

0 voters


@Powers voted! Thanks!

This has been submitted as a signal proposal on Mainnet:

and xDai:

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The DXD Buyback program was passed by REP holders just over two months ago. Since then, 28 orders have been placed on Gnosis Protocol on xDai (16) and mainnet yielding the following:
Screen Shot 2021-07-19 at 4.10.47 PM

See this spreadsheet for underlying data and more info.

Interestingly, the buyback program has not led to an increase in DXD trading volume. This is likely because volumes across the industry have declined more than 50% from their May highs.

Screen Shot 2021-07-19 at 4.19.09 PM

As a side note, one can see how DXD trading volume has moved to Swapr over the last month.

Looking ahead

DXdao is currently 83% of the way towards completing the $1m laid out in the original signal proposal. There are three active proposals that could push that to just over $900k. There is community discussion on a new token model that would utilize funds from the buyback reserve (2500 ETH). On the governance discussion last week, there was soft consensus to extend the buyback program for another $1m in purchases with the same stipulation. This would require another signal proposal.

Should DXdao continue its buyback program once the initial $1m goal is reached?
  • No
  • Yes, committing another $1m in purchases with same stipulations
  • Yes, but with other stipulations (list below)

0 voters


Once ready, the DXbiz huddle has been discussing utilizing Aqua’s MVP to carry fixed-price-sales of wrapped Ether. That could help paper hands part with much precious DXD, popularize Aqua, and possibly increase Swapr’s volume.

Thanks @Powers for the nice update!

I consider this first round (1m$) of the buyback a success!

  1. DXD has increased in values vs ETH
  2. Swapr has established itself has the n1 trading AMM for DXD.

Excellent work! I voted to continue with another round of 1m$.


Great stuff - As @Iam_kmkm mentioned, a success on all fronts.

Buying back more when the treasury is still strong (despite market conditions), and DXD is still so undervalued vs. book value, seems a no-brainer to set us up nicely for the future.

I’m keen to get involved in the new token model discussion too, so will make my way there.

Voted to continue with another $1MM round.


It’s Bainy’s turn to weigh in. @hedgedhog

:heart: :heart: :heart:
DXdao GNMI :clap: :rocket:

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Proposed text for signal proposal to extend buyback program:

This proposal would extend the DXD Buyback Program for an additional $1m in DXD purchases. The parameters established in the original proposal and the updated proposal remain in effect.


The DXD Buyback Program was passed through a signal proposal in May 2021. The community initiated the program to return value to DXD holders given the growth in the treasury. So far, DXdao has purchased 2,992 DXD through the program at an average price of 0.135 ETH/DXD or $875k with 4 additional orders as live proposals currently.

This has been executed through the GP Relayer on xDai and mainnet, which places an order on the Gnosis Protocol using the Swapr ETH/DXD as an oracle. Each order requires two proposals, a funding one to send ETH to the GP Relayer and a multi-call. 16 orders were executed on xDai and 14 on mainnet. See this spreadsheet for more information.

The Buyback Program was updated in June to increase the slippage tolerance to up to 5% and clarify the collar calculation.


This proposal would authorize another $1m in DXD purchases through the process laid out in the original signal proposal. Buyback orders may be placed on the open market as long as the book value of the ETH and stablecoins in the treasury is larger than DXD’s outstanding circulating supply.

All other parameters established in the original DXD Buyback Program signal proposal and the subsequent Parameters #1 Update will continue to govern the additional $1m in purchases. The community will continue to explore additional avenues for making purchases outside the GP Protocol, including Swapr.

The community is exploring a new DXD token model and specifically what to do with the 2,499 ETH in the buyback reserve, which is considered to be owned by DXD holders. This cannot be accessed until the DXD token contract is updated.


Thanks @Powers !
I support the buyback program as long as DXD is trading at a steep discount to treasury NAV.

Can you please point to where the discussion about the new DXD token model is happening?

This has been submitted, boosted and available to vote on for next 5 days on

xDai (still pending boosting, so voting locks up your REP):

and Mainnet:

Hey @cmagan I think that post has the most recent discussion in the forum. We touched on this during the last dev call and @AugustoL was working on an intermediate step to convert DXD to a simple ERC-20 token by upgrading the bonding curve contract. That seems like the first step for any new model, so I think it makes sense to do that now.
There is still a larger discussion to be had on the long-term model, which I also think coincides with the Governance 2.0 implementation (rather than doing two upgrades).


I’m specifically waiting for this as it’ll enable to safely pull all assets out of the BC contract.
But I’m also looking forward to a more deep discussion around the future token economics of DXD!
@AugustoL is there a place where I can follow the progress? Some repo you’re working on?

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