@KemarTiti, thanks for taking the time to read and respond to my idea, and making me think more about the technical feasibility. If we’re still interested in exploring this further, I have an idea that could make implementation easier, while still achieving the overarching intent of my proposal.
Instead of providing real-time fee discounts for each price update (which, as you mentioned, requires repeated cross-chain matching and additional processes to pull staking rank data and apply discounts), we could implement a periodic fee rebate system.
Here’s how it could work:
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The big idea is that the user is refunded a percentage of the fees they paid, but only at the end of a pre-set timeframe (e.g. weekly or monthly). The percentage received will be based on a snapshot of the user’s rank in the ranking system.
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First, the data consumer (e.g. an app) registers their SPL wallet where their $PYTH is staked, by signing a message to prove wallet ownership, then “binds” it to their other addresses (EVM or others) that their app uses to pay for price update fees, and does any other verification required to prove that they are a legitimate data consumer. Completion of this step gives them entry into the ranking system / PDCA.
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The ranking system can be managed onchain on the Solana network, where $PYTH staking takes place. As previously explained, the ranking algorithm should account for both amount and duration of staked $PYTH. Since the system would now involve periodic snapshots, there should be mechanisms to prevent people from gaming it.
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After the snapshot happens (each week or month), a percentage of the fees paid by the user is refunded to the address from which the fees were paid. The percentage depends on the user’s rank at the snapshot.
This would still effectively be a fee discount system, just executed in a slightly different way.