Pyth Network Launches PYTH Reserve Program: A New Mechanism for Protocol Revenue Feedback and Token Value

2025-12-12 09:30:11

【Crypto Rhythm】Pyth Network recently announced a new initiative—the establishment of the PYTH Reserve Mechanism. This structure is quite interesting: the protocol’s own earnings are directly used to buy back PYTH tokens, forming a closed loop.

How does it work exactly? The treasury of Pyth DAO allocates funds from protocol revenue, and then each month uses these funds to buy back PYTH on the open market. The repurchased tokens become part of the PYTH Reserve—essentially turning the real product value directly into support for the token.

The core purpose of this design is to tightly link the actual adoption of the product and the network’s token value. In other words, the more Pyth users there are and the more the protocol earns, the more real income flows into buybacks, making the token more valuable. This is not just empty promises but backed by solid economic data. This feedback mechanism is still a relatively new concept for DeFi projects.

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MEVvictim

· 10h ago

This is the right way. Buying back with real money is much more reliable than empty promises. --- It's another data-driven mechanism. Compared to those projects that only talk but don't act, it's definitely refreshing. --- The core idea is that profits are directly returned to token holders. There's nothing wrong with a closed-loop logic; it all depends on whether Pyth's revenue can actually grow. --- Wait, can this mechanism withstand a bear market? What to do when there's no income. --- Finally, I see projects daring to directly link revenue to token value. Most are vague on this point. --- Sounds good, but it still depends on actual execution. There are many perfect things on paper. --- This round is indeed innovative. Using the protocol's real revenue to support token value is much stronger than those that only focus on fundraising.

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ImpermanentPhobia

· 10h ago

This is the right way. Speaking with real money is better than anything else. Unlike some projects that only hype the ecosystem prospects, Pyth's logical closed-loop system is quite tight. --- The buyback mechanism basically means that the protocol's income is directly returned to token holders. Is this approach correct? Actually... it's a bit like traditional financial dividends, but with a Web3 twist. --- But to be honest, how many projects can truly坚持每月回购? The key depends on their subsequent execution capability—don't just make empty promises again. --- Wait, in this case, won't the PYTH reserve keep increasing, eventually leading to super deflation? Or is there a ceiling designed into it? --- Fresh? Not exactly, but it's definitely more reliable than a bunch of pump-and-dump tokens, at least with actual income backing it. --- I just want to see the progress of the buyback in six months. Anyone can talk about pretty words.

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LiquidatedTwice

· 10h ago

This is the right way. Finally, a project dares to do this. Genuine buybacks with real money, not just empty promises or boastful claims.

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blocksnark

· 10h ago

Finally, a project that makes sense—direct buybacks of revenue instead of empty promises. This is the right direction.

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FlyingLeek

· 10h ago

Hey, this buyback mechanism truly brings the product value to life, much better than empty promises.