Pyth DAO Approves ‘100% Rule’ Directing Its Share of Product Revenue to PYTH Buybacks

Pyth DAO’s New 100% Rule: All Product Revenue Goes Straight to PYTH Buybacks

The Pyth Network’s community‑governed DAO has just adopted a sweeping change that will funnel every cent of its share of product revenue into buying back the native PYTH token. The move, codified in proposal OP‑PIP‑136, replaces the month‑by‑month voting process that had governed each purchase with a single standing authorization. The result is a more streamlined, predictable buy‑back schedule that could help stabilize PYTH’s price and reinforce the network’s alignment with its users.

Why the Change Matters

Under the old system, the DAO’s treasury was replenished by monthly purchases of PYTH, each requiring a separate vote. Those purchases had been falling sharply—from roughly 2.75 million PYTH in March to just 669,662 in August—despite the network’s revenue growing 86% quarter‑over‑quarter to $11.5 million in September. The slowdown raised concerns that the DAO was not keeping pace with the network’s earnings.

The new rule eliminates the need for repeated votes by granting the DAO a standing authorization to spend its share of revenue on open‑market PYTH purchases. The DAO will now direct 100% of the 60% share it receives from Pyth Pro, Listing as a Service, the Data Marketplace, and Pyth Indices straight into the PYTH Reserve. This is the first time the DAO has committed its entire revenue stream to the token, a move that CEO of Douro Labs, Mike Cahill, called the network’s “strongest alignment yet.”

How the Buy‑Back Process Works

Revenue that arrives in the DAO’s treasury as stablecoins is handled by the Pythian Council Ops Multisig. The council converts the stablecoins into PYTH under existing limits: a 5% slippage cap, a $25,000 cap per trade, and a preference for using aggregators. The council is prohibited from selling, borrowing against, or distributing PYTH, ensuring that all purchased tokens are added to the reserve.

While the proposal does not cover direct PYTH payments from partners like Douro Labs, it clarifies that any such payments will be converted to PYTH on‑chain in the same way. The DAO’s new policy also extends to non‑PYTH assets already held in the treasury, ensuring a comprehensive approach to token management.

What This Means for the Pyth Ecosystem

1. Predictable Funding for the Reserve – With a standing authorization, the DAO can schedule purchases in advance, reducing the administrative burden and aligning buy‑backs with revenue cycles.
2. Potential Price Support – A steady stream of open‑market purchases could provide a floor for PYTH’s price, benefiting holders and users who rely on the token for network access.
3. Increased Transparency – The DAO’s governance forum now lists the proposal as passed, and the first purchases under the new rule ran on September 30, giving the community a clear audit trail.
4. Alignment with Network Growth – As Pyth’s annual recurring revenue continues to climb, the DAO’s commitment to reinvest 100% of its share into PYTH ensures that the token’s value proposition remains tightly linked to the network’s success.

Looking Ahead

The Pyth DAO’s 100% rule marks a significant step toward a more efficient and aligned governance structure. By removing the need for monthly votes, the DAO can react more swiftly to revenue fluctuations and market conditions. Stakeholders will be watching closely to see how the new policy impacts PYTH’s liquidity and price stability in the coming months.

For Pyth users and investors, the rule signals a strong commitment to token value and network health. As the DAO continues to execute purchases under this new framework, it will be crucial to monitor how the reserve grows and how the market responds.

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TL;DR: Pyth DAO has adopted a standing authorization that sends 100% of its product revenue share straight into PYTH buy‑backs, replacing monthly voting and aiming to strengthen token value and governance efficiency.