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.