The decentralized finance (DeFi) ecosystem is on the cusp of a revolutionary shift in 2025, with the arrival of what Galaxy Research calls the “dividend era.”
This new chapter in DeFi development will mark a milestone by distributing, for the first time, at least $1 billion in nominal value between users and token holders, leveraging the generated revenue and treasury funds. This phenomenon not only reflects a greater maturity of DeFi, but also how regulation and competition are transforming the dynamics of this emerging space.
Clear regulation that favors the distribution of value
One of the key levers for this transformation will be the definition of a clearer regulatory framework for DeFi . As regulations are finalized, onchain applications will have the incentive and legal certainty necessary to expand value-sharing mechanisms with their communities.
Galaxy Research argues that regulatory clarity will allow protocols to more actively distribute rewards to their users, something that was previously challenging due to the uncertain legal landscape. This will not only increase user trust in DeFi platforms but also attract new entrants to the space, broadening adoption.
Ethena, Aave and the path to value sharing
Several leading protocols have already begun taking concrete steps to implement revenue sharing and treasury pools. Ethena and Aave, two prominent names in the DeFi ecosystem, have started discussions or even approved proposals to enable value distribution mechanisms, known as “fee switches.” These tools allow protocols to direct part of their revenues directly to token holders or users of their platforms.
Ethena, with its innovative approach to tokenized financial products, and Aave, recognized as one of the pioneers in decentralized lending, are leading this cultural shift in DeFi. With these initiatives, users not only participate in the system through their everyday interactions, but they also begin to receive part of the benefits generated by the applications they use.
Will Uniswap and Lido be a game changer?
Other DeFi heavyweights such as Uniswap and Lido, which previously rejected implementing revenue sharing mechanisms, may reconsider their stances. Rising competition within DeFi, coupled with new regulatory clarity, is putting pressure on these giants to rethink their strategy.
Uniswap, the leading automated cryptocurrency exchange, and Lido, the largest liquid staking platform, could shake things up if they decide to implement value sharing mechanisms. This would represent a fundamental shift for these platforms, which have so far prioritized growth and expansion over direct revenue distribution.
Buybacks and revenue sharing in scaling
Galaxy Research also projects that we will see an increase in buybacks and revenue sharing directly with users. These moves, driven by a more favorable regulatory environment and an increase in onchain activity, will set a new standard within DeFi.
Leading protocols will conduct buybacks of their own tokens to reduce the circulating supply and increase their implied value, as well as distribute revenue more frequently. Such strategies not only reinforce the trust of users and token holders, but also strengthen the internal economies of the protocols.
The transformation of DeFi in 2025
The dawn of this “dividend era” represents a historic moment for decentralized finance. Users and token holders will no longer view DeFi applications solely as functional tools, but as ecosystems where they can capture tangible value derived from their participation. With over $1 billion at stake , 2025 promises to be a pivotal year for growth in DeFi.
This evolution marks a turning point in how protocols interact with their communities and will lead to the strengthening of the decentralized digital economy. With the combination of more defined regulation, heightened competition, and new proposals, DeFi is opening the door to a more inclusive and sustainable value distribution model.
The next few months will be exciting to watch as this space evolves towards its next horizon of innovation and utility. The age of dividends is here!