The Pyth DAO has approved a proposal to direct 100% of the revenue generated by Pyth's commercial products into open-market purchases of PYTH, the network's native token.

The change, passed as proposal OP-PIP-136, means the amount of PYTH the DAO accumulates now depends directly on the network's fast-growing data revenue.

What Pyth DAO is changing

In a blog post published by Pyth Network on October 8, the DAO said it has approved OP-PIP-136, a rule that commits 100% of the income it receives from Pyth's commercial products to buying back PYTH.

Previously, the DAO moved one-third of its non-PYTH treasury into token purchases every month. That framework came from OP-PIP-87, passed in December 2025, which also required each monthly transfer to have its own vote — twelve votes a year for a policy the DAO had already agreed to.

The new policy ends the recurring vote. A single standing approval now sends the DAO's share of revenue from Pyth Pro subscriptions, Listing as a Service, the Data Marketplace and Pyth Indices straight to the PYTH Reserve. DAO contributor KemarTiti filed the proposal, and it passed on September 24.

The policy also moves the DAO's existing non-PYTH treasury assets into the same process. As a first step, 323,428 USDC and 90 SOL were transferred to the Pythian Council's execution multisig.

The council still cannot sell, borrow against or give away the PYTH without a separate DAO vote.

The PYTH Reserve holds about 41 million tokens; following the first purchases under the new rule on September 30, Pyth's live tracker showed 42 million tokens. Because the tracker is public, purchases made under the standing approval can be followed over time and compared with the shrinking monthly figures that prompted the change.

Why the old rule stopped working

The previous arrangement was buying less and less PYTH each month. A September 9 Ideas Bank post that led to the proposal recorded roughly 2.75 million PYTH bought in March 2026, about 1.80 million in June, around 1.14 million in July and approximately 669,662 in August — a drop of about three-quarters in five months.

Over the same period, Pyth's business was growing.

The post gave two reasons monthly purchases were shrinking. First, the non-PYTH treasury balance was getting smaller. Second, Douro Labs was paying the DAO more in PYTH and less in USDC, leaving less stablecoin to convert.

Douro Labs gained the option to pay in PYTH earlier in 2026, after an April forum proposal. The DAO's share is 60% of Pyth Pro subscription revenue, 90% of Listing as a Service and 60% of the Marketplace, so more of that revenue was already arriving as tokens instead of cash.

The proposal's author said the old method was "increasingly disconnected" from the network's revenue growth. Pyth reported $11.5 million in annual recurring revenue in September 2026, up 86% from the previous quarter, with Pyth Indices adding $1.81 million in fixed ARR.

The company says much of that growth comes from perpetual futures on real-world assets such as stocks, gold, oil and indices, and that more than 94% of tracked RWA perp volume over the past three months used Pyth data.

Kalshi named Pyth as the only price source for its CFTC-cleared gold and silver perpetual futures, which began trading September. Pyth says Coinbase named it days later in an SEC filing for single-name equity perps.

Mike Cahill, CEO of Douro Labs and a core Pyth contributor, said in the October 8 post that the DAO committing all of this revenue to the Reserve is "the strongest alignment this network has had."

Pyth's approval lands amid a broader industry trend: Allium Labs data shows that crypto projects spent a record $638 million buying back their own tokens in 2026. Not everyone is enthusiastic about token buybacks, however. Allium's head of research, Elton Shehdula, warned that buybacks, even though they reduce supply and add demand, do not guarantee price gains.

Source: Cryptopolitan