The post Pyth Network Turns Protocol Revenue Into PYTH Token Reserves appeared on BitcoinEthereumNews.com. Altcoins Pyth Network is changing how it treats its ownThe post Pyth Network Turns Protocol Revenue Into PYTH Token Reserves appeared on BitcoinEthereumNews.com. Altcoins Pyth Network is changing how it treats its own

Pyth Network Turns Protocol Revenue Into PYTH Token Reserves

2025/12/13 20:52
Altcoins

Pyth Network is changing how it treats its own token, moving it from a passive governance asset into something closer to a balance-sheet instrument.

Instead of allowing all protocol income to flow outward, the oracle network plans to route a fixed share of its revenue back into the PYTH token itself. The move reflects a broader rethinking inside crypto about how value should circulate within decentralized systems – and who ultimately benefits when protocols generate cash.

Key Takeaways

  • Pyth plans to use part of its revenue to buy and hold PYTH tokens as reserves.
  • The move links protocol usage more directly to token demand.
  • Execution and transparency will determine whether the strategy restores confidence. 

At the center of the shift is a new reserve model approved at the DAO level. Under the plan, roughly one-third of Pyth’s ongoing revenue will be used to acquire PYTH tokens directly from the open market. These tokens will be held as reserves rather than distributed or burned, effectively turning protocol usage into recurring buy-side pressure.

The strategy signals a desire to anchor token value to real economic activity. As more users rely on Pyth’s price feeds and data services, the protocol’s revenue grows – and so does its capacity to accumulate its own token.

Pyth framed the change as part of a broader ambition to overhaul how market data is priced and delivered globally, positioning the token as a long-term pillar of that system rather than a short-term incentive.

A Response to a Difficult Year

The timing is hard to ignore. PYTH has endured a prolonged drawdown, losing more than four-fifths of its value over the past year. That decline persisted even after moments of high-profile validation, including Pyth’s involvement – alongside Chainlink – in publishing US economic data onchain following an announcement by the Trump administration.

Despite that milestone, market sentiment around the token failed to recover in a meaningful way. PYTH continues to trade near historic lows, drifting slightly lower again in the past day and hovering around the $0.06 level.

Against that backdrop, the reserve plan looks less like a marketing move and more like an attempt to realign fundamentals with token economics.

Not Reinvention, but a Growing Trend

Pyth is not alone in exploring revenue-backed token models. Across DeFi, protocols are increasingly questioning whether tokens should behave more like equity proxies, with predictable links to cash flow.

Earlier this year, Aave’s DAO debated a proposal to deploy a large portion of its annual revenue toward repurchasing AAVE tokens. While that plan has yet to be finalized, it underscored a broader shift in thinking: tokens that do not capture value may struggle to sustain long-term demand.

At the same time, history has made communities cautious. Past buyback-style initiatives have sometimes backfired, particularly when governance processes were opaque or insiders appeared to benefit disproportionately. A controversial proposal at Mango Markets, for example, ended in public accusations of self-dealing and lasting reputational damage.

Execution Will Matter More Than the Mechanism

For Pyth, the challenge now is credibility. A rules-based, transparent reserve strategy could help rebuild confidence by demonstrating that protocol success directly benefits the token ecosystem. Poor communication or uneven governance, however, could reignite skepticism.

Unlike short-term incentives or emissions tweaks, this approach commits the protocol to an ongoing capital-allocation policy. Once in motion, it becomes part of how the network is evaluated.

Whether the market ultimately rewards that shift will depend on two variables: Pyth’s ability to grow demand for its data, and the DAO’s discipline in sticking to the strategy.

What’s clear is that PYTH is no longer being treated as an afterthought. By tying revenue to token accumulation, Pyth is betting that sustainable demand beats hype – and that mature token economics are becoming a requirement, not an option.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Author

Reporter at Coindoo

Related stories

Next article

Source: https://coindoo.com/pyth-network-turns-protocol-revenue-into-pyth-token-reserves/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

SEC urges caution on crypto wallets in latest investor guide

SEC urges caution on crypto wallets in latest investor guide

The SEC’s Office of Investor Education and Assistance issued a bulletin warning retail investors about crypto asset custody risks. The guidance covers how investors
Share
Crypto.news2025/12/15 01:45
the first multi-crypto ETP debuts in the USA

the first multi-crypto ETP debuts in the USA

The post the first multi-crypto ETP debuts in the USA appeared on BitcoinEthereumNews.com. The SEC has approved the conversion of the Grayscale Digital Large Cap Fund (GDLC) into an ETP listable on NYSE Arca, as documented in the S-3 filing submitted to the SEC SEC EDGAR – S-3 GDLC and confirmed by the issuer on its own site Grayscale. This is the first time a multi-crypto product has received explicit approval in the United States for listing on a regulated exchange, opening a regulated channel for diversified exposure to digital assets. The public confirmation came on September 18, 2025 through official communications from the issuer and updates on market bodies. In this context, the market’s attention immediately shifted to timing and operational details. According to the data collected by our research team monitoring SEC filings since 2023, this is one of the few cases where the authority’s staff has authorized the listing of a multi-asset product with explicit reference to the Generic Listing Standards. Industry analysts note that the decision could accelerate the timeline of over 90 related filings currently in the pipeline in 2025, increasing the likelihood of new listings in the next 6-12 months. In the intraday monitoring of ETF flows, we found that Bitcoin products have recently recorded daily flow averages close to $292 million, a value used in our numerical analysis to size the potential impact. What has been approved and why it matters The SEC has authorized the conversion of the GDLC from an OTC fund to a listable ETP on NYSE Arca, along with the adoption of Generic Listing Standards for selected crypto-assets. As highlighted by SEC.gov, the move aims to streamline bureaucracy and accelerate the introduction of new products, impacting access, liquidity, and transparency. That said, the potential impact concerns both retail investors and institutional players. Key Data on GDLC Full name: Grayscale Digital Large Cap…
Share
BitcoinEthereumNews2025/09/19 03:37
Bitcoin’s Battle with Market Pressures Sparks Concerns

Bitcoin’s Battle with Market Pressures Sparks Concerns

Throughout the weekend, Bitcoin exhibited a degree of stability. Yet, it is once again challenging the critical support level of $88,000.Continue Reading:Bitcoin
Share
Coinstats2025/12/15 01:35