[DISCUSSION] CO-PIP-7: Transfer bricked locked token accounts so their legitimate owner can access them

MDA22 · July 15, 2025, 12:52pm

Abstract

During the initial distribution of Pyth locked tokens and during subsequent distributions of rewards as part of the Pyth Reward Program, a Market Data Provider received locked PYTH tokens in a wallet which can’t interact with smart contracts on the Solana blockchain and therefore those funds, which are now partially vested, are inaccessible.

In a previous CO-PIP (#2), a similar problem was resolved by upgrading the Staking Program to enable rescuing some locked token accounts from which withdrawing was impossible.

This proposal aims to do the same, namely: recover funds for one locked Pyth Token Holder (PTH) whose tokens are currently bricked.

Rationale and Description

The Pyth Staking Program (PSP) requires a PTH supplied Solana Wallet Address so that the PTH can interact with the PRP to stake, vote and withdraw - once tokens have vested according to the schedule in the contract. Transactions signed by the private key of this Solana Wallet Address allow the PTH to operate these functions through the PSP.

During the initial allocation and distribution of Locked Pyth tokens in December 2023 and during subsequent reward distributions as part of the PRP (Pyth Reward Program), one PTH inadvertently supplied an Solana Wallet Address which, due to the way the private key is custodied, can’t interact with Solana programs. Therefore, any locked tokens assigned to that Solana Wallet Address are currently inaccessible. This proposal changes the PSP so that locked tokens can be assigned a new owner via constitutional PIP, and reassigns the ownership of 7 locked token accounts to a new wallet provided by that PTH:

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This change allows locked token accounts to be re-parented by proposing a constitutional DAO vote (67% of staked supply threshold). This functionality is only exclusively available via the means of a vote to prevent the ability to silently transfer ownership of locked Token Accounts, and hence locked tokens, without approval of the rest of the DAO.

This PIP transfers ownership of the funds held by the affected Pyth Token Holder. It is in the community’s interest to rectify this issue and recover funds accidentally stranded, the cause of which has since been corrected by a variety of off-chain processes and technical measures.

Key Terms

Solana System Program Address/Solana Wallet Address

A base Solana account, which is created by the Solana System Program has a public and private key. The address of this account is an encoded form of the public key and is the everyday Solana address type fundamental to the operation of the Blockchain.

Pyth Staking Program

The Pyth staking program is the smart contract/Solana program which administers Pyth locked tokens and Pyth tokens staked for the purpose of participating in governance.

Implementation Plan

DAO Vote: Realms

The above vote, assuming it passes, would trigger the recovery of the affected accounts.

At this point the affected PTH will have ownership of their Locked Tokens restored and can stake, vote, and withdraw subject to the terms of the smart contract in the same way as locked token holders who were set up correctly.

List of locked token accounts which are going to recovered and included in this PIP: