The Pyth Network, a blockchain oracle provider, said it will convert a portion of its revenue into PYTH token purchases as part of a reserve strategy.
In a Friday blog post, Pyth said the tokens it buys on the open market with one-third of the protocol’s revenue through its decentralized autonomous organization (DAO) would constitute the network’s reserve. The network said the strategy was designed to increase revenue and token purchases.
“[I]t’s time to rewrite the market data economy on a global level,” said Pyth.
The price of the Pyth Network token (PYTH) has dropped by more than 80% over the past year, despite a brief surge when the platform deepened ties to the US government. The Trump administration announced in August that the company and Chainlink would be responsible for publishing the country’s economic data onchain.
According to data from Nansen, the PYTH price decreased by about 1.3% over the previous 24 hours, reaching about $0.063 at the time of publication.
Related: Grayscale launches Pyth investment fund
Aave DAO proposed a similar buyback initiative in October
The DAO behind the Aave protocol introduced a proposal that would use $50 million of its annual revenue to repurchase its native token, Aave (AAVE). As of Friday, it did not appear that the proposal had been approved.
It’s unclear how Pyth users may respond to the plan. In 2024, when Mango Markets suggested a buyback program to purchase its MNGO tokens, co-founder Daffy Durairaj accused the creators of “untrustworthy behavior and self-dealing.”
Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice