The Pyth Network, a blockchain oracle provider, has announced a strategy to convert a portion of its protocol revenue into purchases of its native PYTH token to establish a network reserve.
- The decentralized autonomous organization (DAO) will use one-third of the protocol’s revenue to buy PYTH tokens on the open market.
- Pyth stated the goal of this reserve strategy is to increase revenue and token purchases as part of an effort to “rewrite the market data economy on a global level.”
This decision comes as the PYTH token’s price, currently around $0.063, has dropped by over 80% in the past year, despite a temporary price boost when the platform, alongside Chainlink, was named responsible for publishing US economic data on-chain for the Trump administration.
Pyth’s plan is similar to a proposal introduced by the Aave DAO in October, which suggested using $50 million of its annual revenue to repurchase its AAVE token. That proposal had not been approved as of the article’s publication.
The article notes that token buyback programs can be controversial, citing an instance in 2024 where a similar proposal by Mango Markets was criticized by a co-founder as “untrustworthy behavior and self-dealing.”
