Pyth Token Phase 2

Ideas Bank
23

What about marketing and brand-building activities that can be done at the DAO level, rather than distributor level?

For example, things like:

  1. High visibility campaigns in public spaces (1)
  2. Strategic partnerships or endorsements (2)
  3. Initiatives to expand the distributor network

There’s definitely some degree of this already happening - like Pyth’s presence and representation at blockchain events/conferences, etc. Are those funded by Douro Labs or PDA? Would direct funding from the DAO make more sense for certain types of brand-building efforts, and perhaps grow Pyth’s brand more effectively in the web2/tradfi realm?

1 Like
24

Dear Pyth fam,

Late response here.

1. On Adjusting Pyth Core Fees Across Chains

I strongly believe we must be cautious when setting the per-call price for Pyth Core across different chains. Unlike many competitors, Pyth supports a large number of small to medium-sized dApps. Many of these projects are barely breaking even or are still in early growth phases.

If fees rise too aggressively — especially if changes occur quarterly — this could introduce significant uncertainty for them. Such volatility in operating costs may push some builders to consider alternative oracle solutions purely for predictability.

I understand the need for revenue optimization, but I think pricing needs to be balanced with ecosystem health.

Recently I saw Pyth added push-oracle support to several chains. If the intention is to expand push-oracle coverage, that might help reduce costs for certain integrators — but more clarity on rollout strategy would be helpful.

2. On Buybacks

I support the idea from @arguer of adjusting the scale of buybacks based on actual revenue flowing into the DAO. A flexible model feels more aligned with sustainability. If the DAO earns more, we can buy back more; if revenue slows, buybacks should naturally scale down. Or if the price movement is under negative under certain market index, we buy more.

This preserves treasury health while still accumulating PYTH over time.

3. On PYTH Token Utility & Community-Driven Use Cases

I recently discussed this with a few ecosystem members, and one recurring theme is that we need more use cases and traction for the $PYTH token beyond staking and governance.

I understand that $PYTH token utility in the web3 ecosystem maybe outside Douro Lab’s core focus — but that doesn’t mean the community can’t build around it.

Something like:

  • small games (e.g. fogofishing on FOGO, but using PYTH under the hood)

  • $ORE-style experiences or simple on-chain gambling games

  • playful experiments that get people interacting with the token

The goal isn’t to turn $PYTH into a gaming token, but to create demand, attention, and positive sentiment around the ecosystem. Even small fun projects can have a meaningful impact on community engagement.

Perhaps the DAO could allocate a portion of revenue to fund game developers or community builders who want to experiment with PYTH-based mini-apps.

The current downtrend of the token — in what is supposedly a bullish market — signals that we may need to rethink how PYTH fits into the broader crypto culture and narrative.

Closing Thoughts

I support many aspects of the proposal, but I believe:

  • fee adjustments must be approached gradually and thoughtfully

  • buybacks should scale with revenue

  • PYTH token utility needs new energy, creativity, and community experimentation

Thank you to everyone working hard to move the pyth ecosystem forward.

25

I Agree with keeping fees low for the ones that neeed it, perhaps keep them in a seperate subsidized basket. The ones that can afford should be paying for the value of the data it receives. Keeping any increase reasonable and with consideration.

I agree with buyback scaling with revenue growth. That makes holding long-term a lot more lucrative. This mechanism will also support the price by reducing selling pressure. The price in general depends solely on what the market makers set it, with influence at times buy the rest of the market.

The more strategically better focus should be on a consumer app as the revenue generation vehicle. Consumers want data that will help them have a global and all encompassing view of the financial landscape. In comes the Pyth consumer app with a mission of empowering everyone to become more financially aware and being able to make better financial decisions which is an overall plus for the economy. It’s really that simple.

With billions of potential subscribers world wide. It’s clear what the game changer will be.

26

An added bonus revenue stream comes with adding the ability to act on buying impulses through the app.

With substantially more cashflow Pyth Pro could be upgraded to the Ferrari of Institutional Market Intelligence Suites. Commanding a greater price for the value proposition.

27

Looks like Pyth just added a token reserve, the mechanism for buybacks scaling with revenue.

https://www.businesswire.com/news/home/20251212210849/en/Pyth-Network-Launches-PYTH-Reserve-to-Link-Adoption-and-Network-Value?utm_campaign=shareaholic&utm_medium=copy_link&utm_source=bookmark

28

Hey mate,

Yes. The vote was live for 7 days, and concluded 5 days ago. As per the standard process, the OP-PIP was listed on the forum, alongside the voting on realms.

Always get your data straight from the source, my friend. Consult the forum and the voting page for correct and up-to-date information. Unfortunately it looks as though you did not participate in the voting, I hope you know where to look for next time.

Link below for your information:

1 Like
29

Both. If you’re a contributor to PDA, PDA covers, if you’re from Douro Labs, DL covers. But overall the majority of the marketing stems from the PDA as it’s sole purpose is to grow the network adoption, brand awareness and further the self-sustainability of the Pyth Network.

On the latter part, isn’t the Community Council with some initiatives like this one or this other, good first steps? They are only starting/getting designed so maybe should see their impacts and reassessing?

Wholeheartedly agree.

So these pushed feeds are operated by Network contributors (i.e. Pyth Data Association) but are not subsidized. Costs are borne by the requestors. This aims more to offload the infrastructure workload on apps, not the cost.

I think this should pass through (if at all) via the Community Council. The DAO itself shouldn’t be/act as a VC, especially in an industry where 99% of the projects fail to sustain medium term traction. Rephrased, for now, I’d prefer the DAO buying PYTH tokens than most likely losing some acquired revenues for experiments.

But again, the Pythentity and others similar projects (TG bot), may very well be worth it, and should draft their proposal on the forum. And then, DAO members can see if this would be coming from the CC or instead the DAO Treasury itself.

3 Likes
30

It’s clear that a lot of thought went into strengthening Pyth’s long-term sustainability and improving how the DAO manages its resources.

2 Likes
31

I was wondering what people think about having other major Pyth products for different market segments.

For example,

Pyth Pro for financial institutions

Pyth Mobile for mass retail

Pyth Tech for Tech and AI usage

Each product with different features and utility.

Each product concentrated on the needs of the segment.

Each product with different revenue structure

All built on the same foundation Pyth Network

32

@Dbxcel Thanks for sharing the idea. However, I don’t see much connection with the original topic. If you would like to start a new discussion, please follow the guidelines here READ FIRST: How to Use the Ideas Bank .

1 Like
33

Building on the transparency and tiered-buyback ideas, we should look at Capital Efficiency. If the DAO is going to hold a massive reserve of $PYTH, we should ensure it’s either (a) rewarding the most active stakers to encourage governance or (b) being put to work as Protocol Owned Liquidity to improve market depth.

Here are several suggestions:

1. The “Real Yield” Staking Model

Currently, the proposal focus is on buying back $PYTH to build a reserve. To increase token demand, you could suggest distributing a portion of the buyback value as “yield” to active governance stakers.

  • The Idea: Instead of just holding 100% of the purchased $PYTH in a silent reserve, a percentage (e.g., 20% of the monthly buyback) could be distributed to users who have locked their $PYTH and actively voted in the DAO.

  • Why it works: This creates a “Real Yield” narrative similar to protocols like GMX or Aerodrome, where token value is directly tied to protocol cash flow, incentivizing long-term holding.

2. Strategic “Burn-Buyback” Hybrid

Holding $PYTH in a reserve is good for the balance sheet, but it doesn’t technically reduce the circulating supply permanently.

  • The Idea: Propose a hybrid model where a portion of the purchased $PYTH is permanently burned, and another portion is added to the Reserve.

  • Why it works: Burning creates a deflationary pressure that is permanent, while the Reserve provides the DAO with “dry powder” for future grants or emergency funding.

3. Yield-Bearing Reserve Management

As the reserve grows, sitting on idle $PYTH is a missed opportunity.

  • The Idea: The DAO could authorize the use of the Reserve $PYTH as Protocol-Owned Liquidity (POL). For example, providing liquidity on Solana-based DEXs (like Orca or Meteora) or lending it on platforms like Kamino.

  • Why it works: This generates secondary revenue for the DAO and ensures deep liquidity for the token, making it easier for institutions to buy/sell $PYTH without high slippage.

4. “Pyth Pro” Referral/Affiliate Mechanism

Since Pyth Pro is the primary engine for this revenue, the community should help drive its adoption.

  • The Idea: Suggest a program where dApps or community members that refer institutional clients to the $10k/month Pyth Pro subscription receive a referral fee (paid in $PYTH from the reserve).

  • Why it works: It decentralizes the “Sales” department of the network and leverages the existing 600+ dApps to find institutional leads.

5. Insurance Fund & “Confidence” Staking

Institutional users are often risk-averse regarding oracle failures.

  • The Idea: Suggest that a segment of the PYTH Reserve be designated as an Oracle Insurance Fund. If an oracle failure is proven via the DAO, this fund could be used to compensate impacted dApps.

  • Why it works: It acts as a “guarantee” of quality. Knowing there is a multi-million dollar backstop makes Pyth significantly more attractive to large-scale financial institutions compared to competitors.

6. Discounted Fees for $PYTH Payments

Currently, fees are often abstracted or paid in native gas tokens.

  • The Idea: Suggest that any fee paid directly in $PYTH receives a 10–20% discount.

  • Why it works: This creates a circular economy where users are incentivized to buy and hold $PYTH specifically to pay for their data needs, creating a “Utility” floor for the price.

In summary, while building a reserve is a vital first step, our goal should be to make $PYTH one of the most productive assets in the space. Moving toward a model that incorporates transparency, ‘real yield’ for stakers, and permanent deflationary burns will create a much stronger incentive for long-term participation. Let’s ensure Phase 2 doesn’t just fund the treasury, but directly drives value back to the community that secures the network.

34

  1. Disagree regarding incentivised voting. This has been disproven as an effective strategy on many governance projects (think Cosmos) where governance is tokenistic and sways many voters to generally vote “yes” on as many proposals as possible. Furthermore, there are debates around the reluctance toward increasing the inflation rate of the token unnecessarily: which I tend to, on balance, agree with.

  2. A valid way of increasing the price-per-token to increase short-term price action. However, it does definitely not provide “dry powder”. If the DAO is burning tokens, it is the opposite of having “dry powder”. You are perhaps mixing up selling with burning? Or if you are referring to the non-burned tokens specifically, it will have a net-neutral effect (not a positive one) on available X/PYTH buying power.

  3. If you are referring to adding funds to a liquidity pool, there are further risks with the aforementioned. Smart contract risk, bad debt risk (if in lending), divergence losses, etc. Without careful, direct management of a liquidity position (which is difficult with a multisig) I feel this is far too cumbersome, for a potential 1% in trading fees (vs impermanent losses). A more detailed breakdown of specific product investment would be necessary to adequately assess your ideas. I would more likely welcome lending-based (low-maintenance) investments, however I would also argue (my opinion) now is not the time in the market to be selling any $PYTH.

  4. Not a bad idea in theory. However we have already voted on assigning Douro Labs with this “build, develop, sell” product. I would encourage anyone with sales ideas to contact Douro Labs with opportunities. They may be open to something akin to a “finder’s fee”, however, this is only my assumption.

  5. We do have a way of obtaining $PYTH through OIS slashing for bad publishers. I would prefer to see this insurance paid for indirectly by OIS slashing. In my opinion, it would be preferable to utilise those funds rather than Reserve funds.

  6. I like this idea the most. It may introduce extra complexity (Given $PYTH token does not exist natively on all Blockchains) so may not be a viable solution for all, and would not necessarily allow permissionless access to Pyth price feeds. I may be incorrect on this point, so would welcome an education on this.

If I may be so bold to ask: is this a completely AI-generated post @TheDinarian ? You have clearly copy+pasted direct output from LLMs in the past, so I want to make sure I am replying with an appropriate level of consideration in future :slightly_smiling_face:

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3 Likes
35

I’d add that the Pyth reserve be used, in part, as a store of value. Similar to Bitcoin. You earn money now and store it in the reserve.

The key ingredient would be to use the stored value as collateral in various currencies to obtain loans at a future time.

I think that’s what token reserves are.

In theory, token buybacks offer a buyer at any price, limited by the revenue. Which, from an investment standpoint is attractive.

1 Like
36

I use AI as an assisted tool in many of my tasks as it can expand upon ideas and more often than not, help elaborate more clearly as to what I am trying to get across. :wink:

37

Gotcha.

I would highly encourage you to review everything and check it for correctness before posting though. Because there were easily disproven errors in what the AI produced.

When dealing with a human, any responder is obliged to exercise compassion, and aim to educate. But if you just use an AI to produce content that you don’t thoroughly fact-check, it just adds to the noise and fake news.

AI is a great tool but should never be used in isolation. Check every reference against first/second-party reputable resources. Pyth docs are a great place to start because it clearly states the slashing mechanism for bad publishers: which I’m assuming the AI suggested and not yourself?

Hope this helps your journey on the forum in future, as AI is generally sloppy/wrong in research. I believe you could easily do a better job with minimal personal effort.

1 Like
38

lob this and support

Looking forward to a succesful vote and the implementation of this proposal