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

**URL:** <https://forum.pyth.network/t/failed-co-pip-122-v2-douro-labs-acquisition-of-express-relay/2635>\
**Category:** Proposals\
**Tags:** constitutional-pip\
**Created:** [July 8, 2026, 6:17pm UTC](https://forum.pyth.network/t/failed-co-pip-122-v2-douro-labs-acquisition-of-express-relay/2635 "2026-07-08T18:17:22Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![KemarTiti](https://sea1.discourse-cdn.com/flex001/user_avatar/forum.pyth.network/kemartiti/32/5_2.png) [@KemarTiti](https://forum.pyth.network/u/KemarTiti)\
**Post date:** [July 8, 2026, 6:17pm UTC](https://forum.pyth.network/t/failed-co-pip-122-v2-douro-labs-acquisition-of-express-relay/2635/1 "2026-07-08T18:17:23Z")

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### Abstract

_This is a [resubmission of CO-PIP-122,](https://forum.pyth.network/t/failed-co-pip-122-douro-labs-acquisition-of-express-relay/2620/2) 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](https://v2.realms.today/dao/4ct8XU5tKbMNRphWy4rePsS9kBqPhDdvZoGpmprPaug4/proposal/EKyt7HNV9uvLKfJiqM71TDqqsrTuq7BCjVTTxxkuyCYA) 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](https://v2.realms.today/dao/4ct8XU5tKbMNRphWy4rePsS9kBqPhDdvZoGpmprPaug4/proposal/EKyt7HNV9uvLKfJiqM71TDqqsrTuq7BCjVTTxxkuyCYA)

### **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](https://solscan.io/account/9HKkxg5dpqjUEW1U2r76SpQCH7uvDMciytNYxrpwMVNc)
- **Timeline:** Payment within 7 days of CO-PIP passing
- **Additional:** Any remaining balance in the [ER fee account](https://solscan.io/account/69ib85nGQS2Hzr4tQ8twbkGh76gKFUfWJFeJfQ37R3hW) 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](https://github.com/pyth-network/governance/pull/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

- [Forum Discussion](https://forum.pyth.network/t/douro-labs-proposes-to-acquire-express-relay/2617)
- [OP-PIP-107](https://forum.pyth.network/t/passed-op-pip-107-express-relay-fee-withdrawal-test/2493), [OP-PIP-108](https://forum.pyth.network/t/passed-op-pip-108-express-relay-fees-withdrawal-usdc/2499), [OP-PIP-110](https://forum.pyth.network/t/passed-op-pip-110-express-relay-fees-withdrawal-sol/2500), and [OP-PIP-111](https://forum.pyth.network/t/passed-op-pip-109-express-relay-fees-withdrawal-wsol/2501) (prior ER fee withdrawals)
- [Constitution Amendment PR](https://github.com/pyth-network/governance/pull/576)

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<div class="post-metadata">

**Author:** ![KemarTiti](https://sea1.discourse-cdn.com/flex001/user_avatar/forum.pyth.network/kemartiti/32/5_2.png) [@KemarTiti](https://forum.pyth.network/u/KemarTiti)\
**Post date:** [July 16, 2026, 4:50pm UTC](https://forum.pyth.network/t/failed-co-pip-122-v2-douro-labs-acquisition-of-express-relay/2635/2 "2026-07-16T16:50:31Z")

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FYI - [Douro Labs Proposes to Acquire Express Relay - #11 by zenyas](https://forum.pyth.network/t/douro-labs-proposes-to-acquire-express-relay/2617/11)