[FAILED] CO-PIP-122.V2: Douro Labs Acquisition of Express Relay

Proposals
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Abstract

This is a resubmission of CO-PIP-122, which failed to reach quorum due to a technical voting issue (Fireblocks/Realms integration) affecting a major staker — not due to lack of community support. The proposal is unchanged.

This Constitutional PIP proposes to:

  1. Approve the sale of Pyth Express Relay (ER) to Douro Labs for $300,000 USDC

  2. Transfer ER program authority to Douro Labs

  3. Amend the Pyth DAO Constitution to remove all ER references

PROPOSAL: CO-PIP-122.V2: Douro Labs Acquisition of Express Relay | Pyth Governance

Rationale

Express Relay was designed to help DeFi applications auction transaction ordering rights. After 18 months of operation, ER generates less than $2,000/month for the DAO Treasury — insufficient to cover infrastructure, engineering, and opportunity costs.

At current revenue, it would take 12+ years for ER to generate what this sale delivers immediately.

Douro Labs has received an offer from a third-party Solana protocol to acquire ER for $300,000. Rather than burden the DAO with multi-party negotiations, Douro Labs proposes purchase ER from the DAO for $300,000 itself, then sell it to that third-party Solana protocol at cost.

This allows the DAO to:

  • Exit cleanly with fair compensation
  • Focus resources on Pyth Pro (the primary revenue driver)
  • Ensure continuity for existing ER users

Specification

Sale Terms:

  • Price: $300,000 USDC
  • Recipient: Pyth DAO Treasury
  • Timeline: Payment within 7 days of CO-PIP passing
  • Additional: Any remaining balance in the ER fee account transferred to DAO

Constitutional Changes:

Remove from Terminology section: Pyth Express Relay (ER): protocol instance that enables DeFi applications to auction off the rights to swap tokens

Remove from Pythian Council delegated powers:

  • the upgrade of the ER program for each of the blockchains where ER is available
  • the assignment of the relayer function for ER and monitoring of the performance of such assignment
  • the setting of the ER fee distribution

Full amended Constitution: GitHub PR #576

Implementation Plan

  1. On-chain vote passes (67% threshold for CO-PIP)
  2. Douro Labs transfers $300,000 USDC to Pyth DAO Treasury within 7 days
  3. Pythian Council executes program upgrade to transfer ER program authority to Douro Labs-provided address
  4. Constitution updated via PR #576 merge

References

1 Like
Q3 2026 — Pyth Express Relay Fees: On Hold Pending Acquisition Vote
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FYI - Douro Labs Proposes to Acquire Express Relay - #11 by zenyas