Pyth Network has launched the PYTH Token Reserve, using a portion of the network's monthly revenue to purchase PYTH on the open market, aiming to ensure predictability and scalability as revenue grows.
On December 13th, Pyth announced a new reserve mechanism. Revenue funding for Reserve comes from four products in the ecosystem: Pyth Pro, Pyth Core price feeds, Pyth Entropy, and Pyth Express Relay.
- Introducing PYTH Token Reserve.
- Use monthly revenue to buy PYTH in the open market.
- Revenue source: Pyth Pro, Core price feeds, Entropy, Express Relay.
What is PYTH Token Reserve?
A mechanism that uses a portion of Pyth's monthly revenue to purchase PYTH on the open market makes the operation predictable and scalable with revenue growth.
How it works: Reserve takes a portion of its recurring revenue and purchases PYTH in the open market. As revenue increases, the scale of operations can expand accordingly, helping to maintain consistency in the purchasing program and the ability to plan resources over time.
The primary objective is to ensure predictability and scalability of the reserve mechanism in line with network-wide revenue growth, reduce reliance on volatile sources, and standardize the PYTH accumulation method over the long term.
Revenue and procurement sources of PYTH
Revenue from the Reserve funding program comes from four products: Pyth Pro, Pyth Core price feeds, Pyth Entropy, and Pyth Express Relay.
These revenue streams provide a recurring cash flow for Reserve. By design, as total revenue increases, Reserve can scale up its PYTH purchases in the open market to maintain predictable operation and align with the growth of the Pyth ecosystem.
