I propose integrating a permanent, transparent Burn Registry into the existing PythWheel (pythwheel.com).
Every spin performed by a Pythian will burn exactly 100 PYTH tokens from circulation. Spins are awarded based on community participation: joining the Pyth Network, earning Discord/community roles, and advancing through higher-tier roles grants more spins (higher roles = more spins = greater deflationary impact).
This creates a gamified, merit-based deflationary flywheel that directly ties active community engagement to PYTH token scarcity.
*Motivation
PythWheel is already a successful community engagement tool powered by Pyth Entropy — provably fair, on-chain randomness that gives active Discord members weekly opportunities to win PYTH prizes, NFTs (PythiansNFTs), and other rewards.
It has proven highly effective at driving participation. However, the current model is purely inflationary from the token perspective (prizes are distributed without removing supply).
We can evolve PythWheel into a true deflationary engine by adding a burn on every spin.
This:
Rewards the most active and highest-role Pythians (the ones who contribute the most to the community).
Creates visible, on-chain deflation that the entire ecosystem can track.
Strengthens PYTH tokenomics without affecting existing staking, governance, or revenue mechanisms.
Turns community fun into real, permanent value accrual for all PYTH holders.
Proposed Specification
Burn Mechanics
Every spin on PythWheel burns exactly 100 PYTH permanently.
Burns are executed on-chain (via smart contract) and are irreversible.
The burn happens at the moment the spin is initiated
Role-Based Spin Allocation (the “higher roles = more spins” system)
Base: New Pythians (joined Discord + basic verification) → 1 spin per week/month.
Mid-tier roles (active contributors, Pythians with verified activity like High Priest etc) → 2–3× spins.
High-tier roles (Chirons, Aristophanes, Venus de Milo, etc., or future advanced contributor roles) → 4–6× spins.
Spin allocation resets periodically (weekly or monthly) to keep it fair and ongoing.
Burn Registry Dashboard
PythWheel showing live total PYTH burned 1,050,500 PYTH:
Monthly burn history with progress bars:
May 26 → 360,500 PYTH
Apr 26 → 464,600 PYTH
Mar 26 → 225,400 PYTH
Clear labeling: “100 PYTH PER SPIN · PERMANENT · DEFLATIONARY”
Technical Integration
Leverage existing Pyth Entropy for spin randomness (already live).
Add simple burn logic to the PythWheel smart contract(s).
Minimal UI/UX changes — just add the Burn Registry section and spin-cost confirmation.
No impact on current prize distribution
Benefits
Deflationary pressure on PYTH supply directly proportional to community activity.
Incentivizes role progression and deeper community involvement.
Marketing & virality — the live Burn Registry becomes a trophy wall that Pythians love to share.
Aligns perfectly with Pyth’s ethos of transparency, decentralization, and community ownership.
Complements (does not replace) existing tokenomics, staking rewards, and revenue mechanisms
Derrp said talk is cheap propopsals are the way so i did it
Looks like an interesting proposal, however, there would need to be some guardrails in place.
Burning 100 PYTH at a time would involve quite a lot of transactions, considering the wheel is currently being spun over 5,000 times per month. Perhaps we can use the end of month metrics and submit a single transaction?
We should also include a provision that a maximum of 50% of the total reserve tokens in the account can be burned at once (we cannot burn more than we have, and setting an upper-bound limit may be useful). This also gives the Community Council the flexibility to increase the amount of PythWheel monthly spins dynamically, without affecting the maximum limits of DAO funds.
We should set a date to review the current parameters (say, a vote to approve it’s continuation or not) every 12 months
We should include a provision to update/change the percentage of monthly burn limit subject to a proposal (cannot be changed within a frequency of less than 6 months from a previous change)
The Community Council will advise the Pythian Council as to the burn amount required, and verified with on-chain metrics. For example, the monthly amount of successful spin interactions with contract 0xdb9B1e94B5b69Df7e401DDbedE43491141047dB3 on Monad. If the deployed chain of PythWheel changes at any time, the Community Council will make these changes known to the DAO and the Pythian Council with a full update.
That the community-built dApp “PythWheel” code be available to be audited by the Pyth Team/the DAO.
That previous month burns be included retrospectively: back to the launch of PythWheel itself
Just a few items for thought, and some security measures
Beautiful proposal right there… I honestly love what I am seeing. Here are my honestly takes and suggestions.
- Total Spins and Pyth to be burnt for the a duration(monthly or weekly) should be displayed on the website( in real time) as well as the total Pyth burnt all time.
- A governance Vote for the continuation of the Pyth token burn program tied to the pythwheel spin should be implemented every 6months( To measure community interest and involvement)
- Burn should happen In 4 weeks format( not 30 or 31days monthly format) So burn can easily follow the Pythwheel week refresh cycle (Monday 12am UTC). And Come with a tag like “PYTH BURN CYCLE”
Burning 100 PYTH at a time would involve quite a lot of transactions, considering the wheel is currently being spun over 5,000 times per month. Perhaps we can use the end of month metrics and submit a single transaction?
Agree 100%
UI showing stats of the burn that will happen (end of every 4th epoch or so) for the excitement . Preety much as it runs right now with icon but with fresh updated data every X time .. schould be ahort its Pyth after all​
We should also include a provision that a maximum of 50% of the total reserve tokens in the account can be burned at once (we cannot burn more than we have, and setting an upper-bound limit may be useful). This also gives the Community Council the flexibility to increase the amount of PythWheel monthly spins dynamically, without affecting the maximum limits of DAO funds.
Agree 50 sound good and the flexibility is good point
We should set a date to review the current parameters (say, a vote to approve it’s continuation or not) every 12 months
6 or 12 m yes
We should include a provision to update/change the percentage of monthly burn limit subject to a proposal (cannot be changed within a frequency of less than 6 months from a previous change)
The Community Council will advise the Pythian Council as to the burn amount required, and verified with on-chain metrics. For example, the monthly amount of successful spin interactions with contract 0xdb9B1e94B5b69Df7e401DDbedE43491141047dB3 on Monad. If the deployed chain of PythWheel changes at any time, the Community Council will make these changes known to the DAO and the Pythian Council with a full update.
That the community-built dApp “PythWheel” code be available to be audited by the Pyth Team/the DAO.
That previous month burns be included retrospectively: back to the launch of PythWheel itself
The proposal doesn’t specify where the 100 PYTH per spin actually comes from. This is fundamental:
• Is it a user fee (spinners pay 100 PYTH)?
• Does it come from the existing PythWheel prize pool?
• Does it require a new Community Council budget line item?
• Or is there a separate “burn fund” being proposed?
Each of these has very different implications for incentives, sustainability, and budget planning. Would be good to clarify.
Forum Process
New ideas (like this one I believe) should typically start in the Ideas Bank for initial discussion and feedback (usually 1-2 weeks) - literally what is happening here. This gives the community time to poke holes, suggest improvements, and build consensus before formalizing as a PIP.
Once an idea has been refined through that process, it can be submitted as an Operational PIP. And for an OP-PIP to officially go to vote, it requires a vote triggered on Realms (with on-chain code if applicable).
Hey there legend. Thank u for your reply and i absolutely agree with your 2 points.
I jumped 2 fast to propopal agree;
would be better to debate about it in the Ideas bank. I appologize for that i jumped 2 hard; my bad and for the future ideas for proposals i will use Ideas Bank; so we can discuss and prepare for proper PIP.
i was abused by Derrp now swallowing the consequences
We live we learn; hope u can forgive me for my rookie mistake.
Yes if you can elaborate whats needed to trigger a vote on Realms would be epic. just for future knowledge i would love to know the process if possible.
Regarding the nr.1 point i thought were talking about burning the reserve tokens. Fees for transactions on MON stayin the same and the Pythwheel prize pool remains intact.
This is exactly why i schould use Ideas bank agree.
But now we got things in debate and maybe we can continue here or do we move it to iBank? So we cean clear things out and then write a new ful detailed with no dilemas to OP-PIP.
Thank u so much Marc I appreciate you and your work alot.
It requires some minimum amount of PYTH staked but it is not necessary that the one suggesting the idea/proposal is the one to put the onchain proposal on ; can always find someone.
By reserve tokens you refer to the ones that the Pyth DAO currently owns in its treasury? Whether they are coming from the monthly purchases or Douro Labs distribution of Pyth Pro and other revenues?
It requires some minimum amount of PYTH staked but it is not necessary that the one suggesting the idea/proposal is the one to put the onchain proposal on ; can always find someone.
I see so as a longtime staker i can do that also. Ok so no extra rights or roles needed for that.
By reserve tokens you refer to the ones that the Pyth DAO currently owns in its treasury? Whether they are coming from the monthly purchases or Douro Labs distribution of Pyth Pro and other revenues?
Yes those from monthly purchases that are active right now or
a mixture of monthly purchases with what Douro Labs distribute of Pyth Pro and other revenues.
@Derrp@Planck Can you advise what is the intended usage of the 0.77 MON per spin on Pythwheel?
I figure that it was increased from 0.60 MON to 0.77 MON when Entropy fees were increased from 0.20 to 0.37 MON by the Pythian Council so mostly curious about the remaining 0.40 MON actually.
I would also like to suggest improving the Discord roles + wallet snapshot logic for PythWheel.
Instead of taking the snapshot only once per month, it would be much better if the system updated automatically on a rolling basis. For example, once per day, or even continuously every few minutes.
This would make PythWheel feel much more fair and alive, because active Pythians would not have to wait a full month for their new roles or wallet eligibility to be reflected.
If the goal is to reward real community participation, then the role and wallet data should probably update much closer to real time.
icon but with fresh updated data every X time .. schould be ahort its Pyth after all​
6 or 12 m yes
