Abstract
This Constitutional PIP proposes to:
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Establish the Pyth Data Marketplace as an official Pyth DAO product
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Assign Douro Labs as operator under a 60/40 revenue share, inline with Pyth Pro (Pyth Lazer)
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Implement an optimistic approval model for publisher onboardings
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Amend the Pyth DAO Constitution to formally recognize the Marketplace (PR) For full background and rationale, see the Idea Bank discussion: Pyth Data Marketplace — Expanding Pyth’s Distribution Layer for Institutional Datasets
Rationale
Pyth Network has established itself as the leading first-party oracle for financial data — 120+ institutional publishers, 100+ blockchains, $2T+ cumulative trading volume.
However, many institutions want to leverage Pyth’s infrastructure without contributing to aggregated feeds. They have:
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Proprietary datasets that cannot be aggregated
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Non-price data (economic indicators, indices, benchmarks)
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Requirements for full attribution and control
The Pyth Data Marketplace addresses this gap by enabling pass-through distribution of third-party institutional datasets through Pyth infrastructure — expanding Pyth’s role from oracle network to global data distribution layer.
Benefits:
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For institutions: Global reach (100+ chains, 600+ apps) without infrastructure investment
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For Pyth ecosystem: Expanded TAM, stronger brand, network effects
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For developers: Single API for both Pyth feeds and third-party datasets
Key Terms
1. Product Definition
The Pyth Data Marketplace is a distribution platform for third-party institutional datasets, administered by Douro Labs.
Key distinction: The Marketplace does not alter, aggregate, or transform provider datasets. It acts as a pass-through — data retains its source integrity, metadata, and attribution end-to-end.
Important: Marketplace datasets are not covered by Oracle Integrity Staking (OIS). Douro Labs provides infrastructure and delivery, not data validation. Data quality, accuracy, and SLAs remain the sole responsibility of the originating provider.
- Operator Assignment
Douro Labs is assigned as administrator of the Pyth Data Marketplace. This includes:
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Data Provider Management: Selection, onboarding, and removal of Marketplace providers
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Commercial Terms: Negotiation of marketplace agreements within the models below
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Infrastructure & Delivery: Technical infrastructure for data distribution and distribution
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Billing & Entitlements: Where applicable, handling of billing and customer contracts
- Provider Models
Douro Labs may administer the Marketplace using three models:
| Model | Description | Douro Role |
|---|---|---|
| Model 1 — Pyth Delivery + Provider Billing | Provider delivers data through Pyth; customer contracts with provider | Infrastructure + delivery |
| Model 2 — Full Pyth Distribution | Provider licenses to Douro; customer contracts with Douro | End-to-end |
| Model 3 — Referral | Douro lists and introduces; provider handles the rest | Referral only |
- Revenue Distribution
Of all proceeds generated by Douro Labs from Marketplace operations:
| Recipient | Share |
|---|---|
| Pyth DAO Treasury | 60% |
| Douro Labs | 40% |
Payments shall be made monthly.
12-Month Review Clause: Revenue split will be reviewed 12 months after Marketplace launch, once sufficient data exists to evaluate whether model-specific rates are warranted. Any changes would require a follow-up Operational PIP.
- Optimistic Approval Governance Model
Data provider onboardings follow an optimistic approval process — onboardings proceed unless formally objected to and blocked.
Step 1: Onboarding Notice (Day 0)
Douro Labs posts all new data provider onboardings in a dedicated “Marketplace Onboardings” forum section. Each notice must include:
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Provider name
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Dataset category
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Commercial model (1, 2, or 3)
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Overlap assessment (potential conflicts with Pyth’s core feeds)
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Projected annual value tier (e.g., <$50K, $50K-$250K, >$250K)
Posting starts a 30-day window.
Step 2: Informal Q&A Period (Days 1-30)
Anyone — Council members, token holders, community — may ask questions on the forum post. Douro Labs responds and clarifies.
Expected outcome: Most onboardings resolve here with no objection.
Step 3: Formal Objection (If Needed)
If concerns are not resolved through Q&A, two objection paths exist:
| Who | Mechanism | Threshold to Pause Onboarding |
|---|---|---|
| Pythian Council | Council resolution | Super Majority (6/9) votes to object |
| Token Holders | Operational PIP | Standard quorum + majority votes to object |
Important: Raising a vote is not sufficient. The objection must pass — reach quorum and achieve majority — to pause the onboarding. A failed objection vote means onboarding can proceed as planned.
Step 4: Resolution Process
If an objection passes:
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Douro Labs has 14 days to present a structured response addressing concerns
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The same body that objected votes on the resolution:
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Council objected → Council votes
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DAO objected via OP-PIP → DAO votes via follow-up OP-PIP
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Possible outcomes:
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Approve — Concerns addressed, onboarding proceeds
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Reject — Onboarding blocked
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Renegotiate — Sent back with specific conditions
Lapse clause: If no resolution vote occurs within 30 days of Douro’s response, the objection lapses and onboarding proceeds.
- Reporting Requirements
Douro Labs shall provide monthly reports on Marketplace operations, aligned with Pyth Pro reporting cadence. Reports shall include:
| Metric | Description |
|---|---|
| Total revenue | Marketplace revenue for the period |
| DAO share paid | Amount transferred to Treasury |
| Active providers | Number of live Marketplace providers |
| Active datasets | Number of datasets in distribution |
| New onboardings | Providers added during period |
| Revenue by category | Breakdown by dataset type |
Reports shall be:
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Published in the Reports forum section
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First report due no later than one full quarter after this proposal passes.
- Conflict of Interest
Douro Labs shall disclose any material financial relationship with Marketplace publishers, including:
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Equity ownership
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Revenue guarantees
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Preferential terms to related parties
Where material conflicts exist, disclosure must be included in the onboarding notice and monthly reporting.
- Termination
The Pyth DAO may revoke Douro Labs’ mandate to operate the Marketplace via a subsequent Constitutional PIP.
Constitutional Amendment
The Pyth DAO constitution would be edited to the below version: https://github.com/pyth-network/governance/pull/573
Implementation Plan
| Phase | Timing | Action |
|---|---|---|
| 1 | Days 1-7 | On-chain vote on CO-PIP-99 (LINK) |
| 2 | Upon passage | Constitution amended per above |
| 3 | Upon passage | Douro Labs authorized to operate Marketplace |
| 4 | Upon passage | “Marketplace Onboardings” forum section created |
| 5 | Ongoing | Provider onboarding begins |
| 6 | Q+1 post-passage | First Marketplace report published |
| 7 | End of April 2027 | Revenue split review conducted |