Pyth DAO to Use One-Third of Revenue for Monthly PYTH Buybacks
Pyth Network’s DAO has approved a reserve strategy to convert one-third of protocol revenue into systematic monthly open‑market purchases of the PYTH token. Announced December 12, 2025, initial buybacks are estimated at $100k–$200k per month and will scale with revenue to form a transparent PYTH Reserve that ties product adoption to token value. Revenue sources cited include Pyth Core price feeds across 100+ chains, Pyth Entropy random-number service, and a new institutional subscription, Pyth Pro, which is on pace in its first month to annualize roughly $1M ARR. The DAO aims to capture 1% of an estimated $50B institutional data market (~$500M/year) to expand reserve purchases. Tokenomics: 10B total supply, ~5.75B circulating, remaining tokens vest through 2027; PYTH holders govern fees and coverage. Traders should note that structured buybacks increase on‑chain demand and reduce net sell pressure from protocol revenue, potentially supporting PYTH price; however, buyback scale is modest relative to total market cap and past market reactions to DAO buybacks have varied. Key keywords: PYTH, Pyth Network, token buyback, oracle revenue, institutional subscriptions.
Bullish
The buyback policy is likely bullish for PYTH because it creates predictable, recurring demand by converting one‑third of protocol revenue into open‑market purchases. For traders, this reduces net sell pressure from revenue flows and signals active treasury management linking product adoption to token value. Short-term impact: modest upward pressure—initial monthly purchases ($100k–$200k) are small relative to large-cap crypto volumes, so volatility may persist and price moves could be limited unless revenue and buyback scale increase. Long-term impact: if Pyth grows subscriptions (Pyth Pro) and captures market share of the institutional data market, buybacks could materially increase, tightening supply and supporting higher valuations. Risks: buyback effectiveness depends on actual revenue growth, execution transparency, token unlock schedules through 2027, and market sentiment toward DAO buybacks; controversies or scaling shortfalls could mute gains. Overall, structured recurring buybacks are a supportive fundamental for PYTH but not an immediate guarantee of large price appreciation.