Abstract
This Operational PIP proposes to:
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Set the OIS reward rate parameter (Y) to 0 before the reward pool depletes on April 22-23, 2026
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Preserve OIS staking and slashing mechanisms — publishers and delegators retain stake at risk; enforcement remains intact
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Align OIS parameters with the Pythnet sunset timeline established by OP-PIP-100
No new token allocation to OIS is proposed. Governance staking remains unchanged.
Rationale
- Infrastructure Alignment (OP-PIP-100)
OP-PIP-100 (PASSED) establishes the migration from Pyth Core (Pythnet) to Pyth Pro (Lazer), with Pythnet sunset scheduled for Q3 2026. OIS runs on Pythnet infrastructure.
Continuing to emit tokens on soon-to-be-deprecated infrastructure is misaligned with the DAO’s strategic direction. Rather than allocate additional resources to a sunsetting network, rewards should wind down naturally alongside the infrastructure transition.
- Technical Necessity
The OIS reward pool will deplete on or around Wednesday, April 22, 2026.
Current on-chain state:
| Parameter | Value |
|---|---|
| Reward rate (Y) | 1924 |
| Pool remaining | ~2.4M PYTH |
| Total staked | ~1.0B PYTH |
| Weekly distribution | ~1.93M PYTH |
The reward calculation each epoch: distributed = Y / 1,000,000 × total_staked
If Y remains at 1924 while the pool balance reaches zero:
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The program continues calculating ~1.93M PYTH/week in rewards
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No tokens exist to fulfill these calculations
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This creates an accounting mismatch: phantom obligations accrue, claims fail or display misleading balances
Setting Y = 0 before depletion is not just discretionary policy — it is required to maintain on-chain state coherence.
- Enforcement Preserved
This proposal does not disable OIS staking or slashing. Publishers and delegators:
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Retain staked positions
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Remain subject to slashing for data quality violations
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Can withdraw at their convenience (no lockup changes)
The enforcement mechanism technically does not require rewards — it requires stake at risk. That remains intact.
Scope & Governance
This is an Operational action within Pythian Council authority.
Per the Pyth DAO Constitution, the Pythian Council manages OIS pool capacity and reward rates. Setting Y = 0 is a parameter change, not a Constitutional amendment.
Token unlock schedules are a separate matter requiring a Constitutional PIP (CO-PIP) with a full DAO staker vote. These are:
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Different governing bodies (Council vs. all stakers)
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Different timelines (days vs. weeks)
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Different stakeholder sets (operational vs. all tokenholders)
Bundling unrelated changes increases proposal complexity and failure risk. This OP-PIP addresses the immediate technical requirement; unlock discussions should proceed via the appropriate governance path (CO-PIP).
Implementation
Action: The Pythian Council will set the OIS reward rate parameter (Y) to 0 via the staking program before April 22, 2026.
Contract: pyti8TM4zRVBjmarcgAPmTNNAXYKJv7WVHrkrm6woLN
Staker Impact:
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Existing stakers may withdraw tokens at any time
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No lockup or withdrawal changes
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Governance staking functionality remains available
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Slashing mechanisms remain active
Proposal: Pyth Network
Proposal Verification
Councilors can verify this proposal by following these steps:
- Open the proposal on the Pyth Governance portal:
8CjS7Vg9W1JqC2Vd4XLwtLc8P562akQeaMxZWRqUP2WR( Pyth Network ) - Verify the target program is the OIS Staking Program:
BE8Xq1iHSQYKG8CZorZsrTnxyeHKQLzCWm4dYKdFkVEL - Verify the instruction calls
updateY - Verify the parameter value being set is Y =
00(10previously) - Verify the proposal authority is the Pythian Council multisig