The Pyth Network, known for its blockchain oracle capabilities, has announced a new strategy to establish a reserve by allocating approximately one-third of its protocol revenue to buy back its native PYTH tokens. This initiative aims to enhance both the network’s revenue and token integrity.

In a recent blog post, Pyth stated that these token purchases will occur through their decentralized autonomous organization (DAO). They believe that this approach will contribute positively to the network’s financial health.

“It’s time to rewrite the market data economy on a global level,” highlighted Pyth.

Source: Pyth

Despite recent partnerships, such as the one with the US government which led to a fleeting spike in token value, the PYTH token has seen a price decline of over 80% in the past year. Currently, the PYTH token is valued at around $0.063, marking a 1.3% drop in the past day.

Additional Initiatives

In a related move, the Aave DAO has proposed a buyback program allocating $50 million of its annual revenue for repurchasing its native AAVE tokens, although the plan is still awaiting approval. In contrast, past suggestions for buybacks from other platforms have met mixed reactions, leaving uncertainty regarding community support for Pyth’s new strategy.

Related articles: Grayscale launches Pyth investment fund

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