Pyth DAO votes to use all product revenue for PYTH buybacks

Pyth DAO approves proposal: use 100% of commercial product revenue to repurchase PYTH on the open market

Pyth DAO has formally approved a proposal to use all of its revenue from Pyth commercial products to purchase PYTH tokens on the open market. The change was passed in the form of OP-PIP-136, which means that the amount of PYTH held by the DAO is now directly determined by the network's rapidly growing data revenue.

What changes is Pyth DAO making?

According to a blog post published by Pyth Network on October 8, the DAO approved a new rule called OP-PIP-136, which stipulates that the full amount of funds the DAO receives from Pyth commercial products will be used to repurchase PYTH.

Previous policies originated from OP-PIP-87 proposal in December 2025. The old rule required the DAO to use one-third of its non-PYTH treasury assets for token purchases every month, and each monthly transfer required a separate vote. This means that for a routine operation that the DAO has long agreed to, twelve independent voting procedures are required per year.

The new policy eliminates monthly voting sessions. Currently, DAO's share of revenue from businesses such as Pyth Pro subscriptions, Listing as a Service, Data Markets and Pyth Indices can be transferred directly to the PYTH Reserve with a single established approval. The proposal was proposed by DAO contributor KemarTiti and was approved on September 24.

In addition, the policy also includes DAO's existing non-PYTH treasury assets into the same process. The first step is to transfer the 323,428 USDC and 90 SOL to the Pythian Council's executing multi-signature account. Despite this, the Council has no right to sell, mortgage or gift these PYTH tokens without a separate vote from the DAO.

Currently, the PYTH Reserve holds approximately 41 million tokens. But after completing the first batch of purchases in accordance with the new rules on September 30, Pyth's real-time tracking data showed that its holdings had reached 42 million.

Why are the old rules of Pyth DAO no longer applicable?

Repurchase efforts under the old rules weaken month by month. According to the September 9 "Ideas Bank" post that triggered the proposal, approximately 2.75 million PYTHs were repurchased in March 2026, approximately 1.8 million in June, approximately 1.14 million in July, and only approximately 669,600 in August. In five months, repurchase volumes fell by about three-quarters.

Meanwhile, Pyth's business continues to grow. The post pointed out two main reasons for the decrease in monthly repurchases: first, non-PYTH treasury balances were gradually shrinking; second, Douro Labs paid an increase in the proportion of PYTH to DAO, while the proportion of USDC decreased, resulting in fewer stablecoins available for conversion.

Douro Labs received the option to pay in PYTH after a forum proposal was passed in April 2026. Since the DAO's revenue share is 60% of Pyth Pro subscription revenue, 90% of market-as-a-service revenue, and 60% of market revenue, more and more revenue is being received in tokens rather than cash.

The author points out that old methods have become "increasingly disconnected" from growth in Internet revenue. Pyth reported annual recurring income (ARR) of $11.5 million in September 2026, an increase of 86% from the previous quarter. Among them, the Pyth index generated a fixed ARR growth of $1.81 million.

The company said most of the growth came from trading in perpetual contracts in physical assets such as stocks, gold, oil and indices. It is said that in the past three months, more than 94% of tracked RWA perpetual contract transactions used Pyth's data.

Kalshi announced in September that it would designate Pyth as its sole price source for CFTC approved gold and silver perpetual contracts. Shortly thereafter, Coinbase also nominated Pyth in an SEC filing as the price source for a single stock perpetual contract.

Mike Cahill, CEO of Douro Labs and core contributor to Pyth, said in an October 8 article that the DAO put all such revenue commitments into reserves,"is the strongest alignment mechanism the network has achieved to date."

Market views on token repurchase trends

However, not everyone is optimistic about the token repurchase trend. Elton Shehdula, director of research at Allium, warned that while buybacks reduce supply and increase demand, they do not guarantee price increases.

Data from Allium Labs shows that spending by cryptocurrency projects on buying back their own tokens hit a record high of US$638 million in 2026.