Implement Fees on Pyth Core Across Networks

Ideas Bank
21

On a separate note, regarding this point:

dApps can pay in PYTH itself for a discount, increasing demand as usage scales.

It is an idea that has been floated around several times, and I want to take the opportunity to share my thoughts, and invite others to share theirs.

I understand the intent to give the PYTH token more utility, increasing demand and buying pressure, etc. However, I see some issues with the mechanics of that system, based on this flow of thought:

  1. We (Pyth supporters, token holders, data publishers, community, team, etc.) want to see the value/price of PYTH appreciate over time, since it is one of the main quantitative measures of the value of the Pyth Network.
  2. If the PYTH token price increases, and fees are paid in PYTH, this means that the dollar cost of fees also goes up for data consumers, which would negate any discounts.
  3. From the perspective of data consumers, the increase in PYTH token price becomes unfavorable to them, and there is no alignment of interests, specifically pertaining to point 1 above.

In my opinion, there has to be a better system that aligns the interests of all stakeholders, while bringing in value to the entire Pyth Ecosystem. I shared an idea about this several months ago (Implement a rank-based fee discount system for data consumers staking Pyth tokens ($PYTH)), but there are also gaps in that idea - the main issue being the fact that data consumers are often the end-users themselves, therefore making it impractical to implement such a discount system.

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22

gm @architehc

Thanks for the thorough research and contribution to all!

Some points (if approved) that will require technical work at the oracle contract level:

  • Discounts for fees paid in PYTH
  • Onchain/automatic discounts for large Pyth users

Since these require contract-level changes, they will naturally take some time to go live even after approval.

That said, I fully agree with your points, reasoning, and implementation roadmap:

  1. Start applying fees on selected EVM chains
    • Expand to additional (lower-value) EVM chains
    • Analyze post-implementation impact (usage vs. revenue)
  2. Initiate a discussion within the DAO on Pyth oracle fee allocation
  3. Begin a discussion on pricing plans for different Pyth usage patterns
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23

gm everyone,

It’s been nearly a month since this conversation began, and I want to start by thanking everyone who participated—whether by sharing thoughts, ideas, or plans. Your input has been invaluable.

We’ve heard from several downstream users of the Pyth oracle on these chains, which is great to see. With that in mind, I believe we’re now in a strong position to move forward with a proposal for the Pythian Council to approve the establishment of fees on these eight chains.

You can find the OP-PIP proposal post here: [ONGOING] OP-PIP-50: Implement Pyth Update Fees on 8 Blockchains

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