Really happy to see this next step for Pyth finally coming to fruition. With the recent development of Pyth Pro and the evolution of existing products, this seems like the logical time to revisit fees and align revenue with support for the Pyth token.
I have full confidence in the DAO and the Pythian Council’s ability to make the right calls around what fees will be appropriate and how to approach these updates. Because of that, I’d like to focus my comments on the strategic reserve and how it might eventually be utilized.
First and foremost, I completely understand the approach of establishing the reserve before taking action on what to do with the tokens. That breathing room allows Pyth Pro to properly get off the ground and gives any fee changes time to settle so we can see their actual impact.
However, Jupiter recently went through a very similar process with their ‘Litterbox’, where fees were used to buy back tokens and accumulate a reserve but without a clear plan for how that reserve would ultimately be used.
Initially, this delivered a strong “sugar hit” of positivity for token holders and the broader ecosystem, reflected in positive price action. But over time, as the fund grew with no defined purpose, it became a burden. The uncertainty around its future weighed heavily on holders attracting fud and steering holders away from the token. Jupiter was eventually forced to burn the entire amount just to resolve the overhang.
With that in mind, I’d suggest aiming to establish a clear use for the Pyth Strategic Reserve sooner rather than later once the initial accumulation phase is complete, whatever that use may ultimately be.
I’ve shared my thoughts on how something like this could be applied here