Phase 2: Community Discussion for DAO Revenues

Ideas Bank
1

Now that we are entering Phase Two and the DAO might get new revenue streams, it is worth imagining what we could do with these funds. Since this is DAO-owned capital, its best to us it to strengthen our community and broaden the amount of people that rely on Pyth. Im not creating a proposal here, more of a collective wishlist to get us talking.

What if we used revenues to boost community growth? We could fund onboarding programs, regional meetups, hackathons, and education initiatives that bring more people into the ecosystem. Maybe even having a global network of Pyth community hubs, each to teach, build, and advocate for decentralized data. This would create deeper participation and new entry points for anyone curious about the protocol.

On the customer side, what if we removed barriers by subsidizing integrations or piloting feeds for new industries? A DeFi project in LATAM or an institution experimenting with tokenized assets could try Pyth at reduced cost, supported by DAO funds? In return, every successful integration expands our footprint and proves the network’s value in new contexts, whether that’s DeFi, TradFi, or emerging real-world applications.

What if, channeling revenues into high-visibility campaigns that bring Pyth into cultural spaces? Sponsoring sports, esports, or tech events, funding thought leadership content, or launching creative marketing that makes Pyth a household name. Each of these directions would bring more users, more builders, and ultimately, more long-term customers for Pyth.

Dont forget, we can also introduce burn mechanics, prop up LPs, increase OIS Rewards for stakers over publishers…but those things are short sighted pumps, that jave no real long term gains..

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Pyth Token Phase 2
Pyth Token Phase 2
[PASSED] OP-PIP-87: PYTH Token Phase 2 — $PYTH Strategic Reserve
2

Let me try to categorize your ideas, and add a few more.

1. Marketing and Customer Acquisition
a. Subsidies for customers in “new” industries (selected industries where realtime price data is needed, and where Pyth may benefit from having an early foothold).
b. High visibility marketing campaigns.
c. Community growth initiatives.
d. Expand distribution channels.

2. Tokenholder Returns
a. Token buybacks and/or burns.
b. Rewards for stakers.
c. Create a treasury/reserve that generates additional yield for the DAO.

3. Research and Development
a. Continue to innovate and improve existing products. For example, improving protocol architecture, adding redundancies (e.g. in cross-chain messaging), and enhancing security.
b. Integrate technologies such as AI, possibly to include some analytical functions, which would make the product even more competitive.

4. Expansion and Growth
a. Expand into new product lines.
b. Strategic acquisitions.

Some of the above might overlap into the current scope of Douro Labs. As the DAO looks ahead to deciding how revenues might be used, it would be nice to have more clarity on how those lines might be drawn.

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3

The idea I’m buying is one effective path is to minimize the cost of integration for protocols, especially emerging or tokenless ones. This approach naturally encourages more projects to adopt Pyth without heavy upfront costs, while at the same time creating indirect value for the DAO.By doing this, we’re not just expanding Pyth’s footprint across ecosystems but also positioning ourselves to benefit from potential incentives or allocations these protocols might release to oracle users. Those returns could then be redirected toward strategic buybacks or controlled deflation mechanisms that strengthen holders’ confidence and long-term token health.

In essence, I want us to turn one initiative into a dual benefit, i.e. more integrations and stronger token value, without leaning on short-term, inflationary tactics.

4

Really like this idea! Here are some of my thoughts and feedback:

Token Value and Long-Term Alignment

Let’s be honest: most people are here for financial upside, not purely for tech or decentralization. People joining the community, buy $PYTH because they believe in the network’s future and see the token as a way to participate in its growth. Holding $PYTH offers potential financial rewards as the network is adopted, while also giving a voice in governance and ecosystem decisions.

Pyth isn’t a Web2 company — there are no shareholders expecting dividends. The $PYTH token is the core asset, connecting the community, the DAO, and the protocol itself. Keeping it strong and healthy is one of the most direct ways to support long-term growth. Positive price action, when it reflects real adoption and network value, is one of the simplest and most effective ways to signal confidence to the broader Web3 community.

Buybacks and Burns

Instead of short-term boosts like temporary LP incentives or reward increases, the DAO could explore structured buybacks or burn mechanisms, ideally done continuously in a DCA-style. This helps long-term holders benefit while reducing short-term speculation. If done transparently and sustainably, it’s more than a “pump” — it’s a way to align the token with the protocol’s real growth.

Focusing on the Right Audience

Pyth is fundamentally a B2B protocol. Sponsoring sports or esports events probably won’t reach the right people. It might be more effective to focus on spaces where trading firms, accounting teams, auditing services, and financial developers are active. That way, our outreach directly supports web2 adoption and usage.

Transparency Across DAO and Protocol

It would also be valuable to improve transparency — both at the DAO level and across the Pyth Network itself. Right now, integrations, partnerships, and usage data can feel like a black box. Building dashboards or tools to track things like Price Feed, Entropy, and PER usage would help everyone see how the protocol is performing. With better visibility, the community could monitor coverage, understand adoption trends, and even suggest optimizations.

Focusing on long-term token value, relevant outreach, and transparent network metrics seems like a practical way to strengthen both Pyth and its community together.

NFA. From SCP, with Love.

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5

Id like to delve into your point about Pyth being a B2B product. I question that theory. But, just questioning it, not saying your opinion is wrong.

Why do we think it is a B2B product? Because only businesses are using it to execute trades?

But if securities are coming on chain, so is Main Street. And if Main street is coming, then you can sell thr consumer on Pyth Networks superior performance over other Oracles.

The angle I am looking is no different than Intel running commercials making consumers think that if a Laptop or Desktop had Intel Processors, then it was superior to whatever those other processor names are. And that drove business to the Hardware companies fhat had Intel inside.

Same thing as Pyth. Market Pyth to consumers about how much better it is than other oracles, that brings value to the brand, therefore more protocols utilize it. Driving up use and Pyth Metwork captures more fees.

Just a ling winded hypothesis as a response to @scp theory

6

I think that regular token buybacks should help the price of pyth tokens to increase.

Higher token prices directly increases the value of rewards to data publishers and developers.

The higher the reward the higher the incentive to publish and develop using pyth.

The result should be increase in utility and revenue.

The tokens bought back could be used for incentives or rewards for outstanding apps to grow the ecosystem.

I think that the higher the rewards for data publishers the more publishers will join the network. Which are steps towards becoming the single source of truth.

Higher token prices will reward the largest stake holders of the DAO for the development andwork done on making the pyth network.

7

Buyback and assumption of constant demand pressure hasn’t worked out so well for so many tokens.

Its not a value add strategy.

8

I disagree, what didn’t work for others does not make it ineffective for pyth network.

A high token price will garner greater interest from all parties that may want to join the ecosystem as well as for those who already have a stake.

I see a rising token price as essential in rapidly scaling the network usage.

9

Over time, as the network revenues grow it’ll add buying pressure.

The more dominant the network becomes the more pricing power. Over time, revenues and profits can easily grow by raising the subscription price.

10

It’s very rare to find a disruptive crypto technology that is clearly superior to legacy systems.

Has a clear mission

A clear market to grow in

Is a potential driver of innovation for the entire defi and tradfi space.

Has a lot of partners with deep pockets. And the trust to publish government data.

I find the pyth network to be the most compelling crypto project that I’ve run across.

Although I don’t know much so don’t put a lot of weight on my knowledge.

I wish you the best with Pyth.

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11

I believe the crypto markets have matured a bit since buy back programs were a big thing. We keep falling on old tools and expect it to solve old problems.

But we all can have an opinion and I welcome all points of view. Keep posting, love to read your thought

12

I’m not sure the Intel analogy fits perfectly here, though it’s an interesting comparison — and it’s not impossible that something similar could happen over time.

Intel’s success came from the fact that consumers could actually feel the difference. A laptop with an Intel chip ran faster and smoother, so the “Intel Inside” sticker became a clear signal of quality. People learned to associate that brand with a better experience.

With Pyth, it’s a bit different. The oracle operates behind the scenes, and most DeFi users don’t really notice which oracle a protocol uses — they just care about things like trust, returns, and overall experience. Even if Pyth provides sub-millisecond, real-time (T-0) data, that advantage doesn’t necessarily translate into something the average retail user can feel.

On top of that, internet speed and global network delay naturally add latency. Unless a user is sitting right next to the server, there’s still going to be delay introduced by the connection itself — so the ultra-fast precision Pyth provides at the protocol layer doesn’t fully reach the end user.

Where Pyth really shines is in institutional or high-frequency contexts, where microsecond accuracy truly matters. That’s why I still see Pyth’s primary focus as B2B for now. Unless a future retail use case emerges that makes that level of precision visible and valuable, I think it stays mainly in that institutional layer.

That said, if retail users start to care more about data transparency or oracle reliability, then “Powered by Pyth” could eventually become a subtle trust signal — maybe not quite Intel Inside, but similar in spirit.

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13

Totally agree that buybacks alone aren’t the solution anymore — the market has matured, and token value now depends more on whether the protocol itself creates real utility and value for the ecosystem, rather than just temporary financial moves.

That said, I still think some form of buyback or token support is necessary. In Web3, the token isn’t just a speculative asset — it’s the one and only symbol of the network, representing governance, participation, and value capture. Completely ignoring the token risks weakening alignment across participants.

Token value also acts as a signal of ecosystem strength and trust. For example, when $SOL was $8, it was harder to convince people that the Solana ecosystem was strong. Now, at $200, it’s not just the technology or adoption that changed; the token itself communicates confidence to users, partners, and developers.

For Pyth, driving adoption among protocols, capturing fees from meaningful network usage, and aligning incentives across participants are ways to create lasting value for token holders. At the same time, there’s room to explore creative ways to signal value to the community — transparent usage metrics, governance alignment, or other mechanisms that let people see how the network is performing.

The key is combining token support with real utility: the token retains both symbolic and economic significance, while the protocol continues to grow sustainably. It’s a fun space to think about — always curious to hear more perspectives.

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14

I believe that the main focus for PYTH profits after expenses would be to grow revenue, grow customers, and add more high quality price feeds for all RWAs.

Greater profits equals higher token price. The greater the profits the higher the token price will be. That’s why it should be prioritized above token buybacks.

But starting token buybacks at a small percentage of profits say 1-2% would be psychology supportive of higher token prices.

15

That is a pretty interesting perspective.

How do we grow the revenue?

16

I think it’ll come down to prioritizing expansion of quality price feed data. Making the product the undeniable best option. So, realistically the network already has a very good roadmap and strategy already inpl place.

I believe that financial AI is where you can actually produce real profits using AI as opposed to generative AI where the profits have yet to justify the investment. Promoting the pyth network as the go to option for Financial AI to demonstrate its ability to make money for its owners without consuming the owners time. Might be the best option for value creation.

Perhaps, the network might start asking questions on how their strategy could have a more AI focus.

17

Another idea is to have pyth network develop its own consumer app that has free with ads and in app purchases, show casing the superior data set while generating a significant revenue stream with growth potential.

This would reach the masses. This might be a lucrative strategy.

As more users consume the price feeds the more publishers will want their prices seen and publish creating that virtuous cycle that PYTH loves.

The app might need some of the technical indicator capabilities and functions chart users like.

Imagine a person looking and wondering where to obtain that thing for that price and can click a link that takes them to the vendor(s). I believe that would open up potential referral revenues.

And or the app itself grows into on online market place where consumers see prices click a button and purchase the thing.

Let’s say the app gets 100 million downloads and revenue per month each is $10 thats $1 billion easy. Thats a conservative estimate of what the gains could be in my view.

That size of revenue would catapult pyth to the top of all crypto earnings and the token value would reflect those earnings.

I would say that if a consumer app is the way to go, I’d do so with urgency.

Why let someone else capture that consumer value, why not take it for yourself?

“Do you know what’s waiting beyond that beach? Immortality! Take it! It’s yours!”

18

Thats a turn I haven’t heard in a while.

I would like tonhear more of these ideas. Come over the the pyth server and mention me in the Waiting Room. We can meet in the numerous different channels to discuss.

19

In my opinion, as successful as Pyth has been so far, we’re only just scratching the surface of what it’s capable of. Eventually, it will be as well known as products like Bloomberg Terminal. Until then, I believe focus needs to stay on growth.

This post outlines a few ideas for how revenue could be used to drive that growth, strengthen the ecosystem, and deliver long-term value to publishers, stakers, and the DAO.

1. Incentivise publishers

Publishers are the lifeblood of Pyth. Increasing the onboarding and retention of high-quality publishers should be a top priority.

I’d like to see a significant portion of revenue put aside to incentivise publishers ideally in addition to the current allocation.

More high-quality publishers → better data → better product → more customers → more revenue

2. Marketing

As @scp has suggested, setting aside a portion of funds for increased marketing toward these institutional-style audiences should also be a high priority.

3. Strengthening OIS Staking

Next on the list would be using part of the revenue for buybacks to boost APY on OIS staking.

This could be done by allocating a fixed % of revenue (ideally from a portion paid to the DAO in tokens other than $PYTH). The APY boost would vary month to month based on revenue earned.

This benefits both publishers and stakers and encourages more Pyth token staking, which supports the ecosystem as a whole.

4. Flexibility

I’d also suggest keeping a portion of funds within the DAO for flexibility, things such as community initiatives, buybacks, talent acquisition, and general ecosystem growth.

What we do with this amount can potentially be decided on by a community vote if the fund reaches ‘X’ amount.

Having these funds aside gives us the option to react as required based on what effects the above measures have. If we were to just burn this amount straight away there’s no getting them back if a better option were to present itself.

Conclusion

In essence, using these funds to grow Pyth and its revenue as aggressively as possible is, in my opinion, the best approach.

The faster Pyth can grow the greater the benefit for everyone involved.

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Pyth Token Phase 2
20

There’s a couple of other things that I like about the pyth consumer app.

It’s a great opportunity to build the Brand among the masses.

It’s an opportunity to put blockchain technology into everyday use for the public.