Pyth Network, a provider of blockchain oracles, announced it will allocate a portion of its revenue for purchasing PYTH tokens as part of its reserve strategy.
In a blog post on Friday, Pyth revealed that one-third of the protocol’s revenue will be utilized for token purchases on the open market through its decentralized autonomous organization (DAO), forming the network’s reserve. The strategy aims to enhance revenue and increase token acquisitions.
“[I]t’s time to redefine the market data economy on a worldwide scale,” stated Pyth.
The price of the Pyth Network token (PYTH) has fallen by over 80% in the past year, despite a short-lived spike when the platform established closer ties with the US government. In August, the Trump administration announced that the firm and Chainlink would publish the nation’s economic data on-chain.
Data from Nansen indicates that the PYTH price fell by approximately 1.3% in the last 24 hours, now standing at around $0.063 as of this publication.
Related: Grayscale launches Pyth investment fund
Aave DAO proposed a similar buyback initiative in October
The Aave protocol’s DAO proposed a plan to utilize $50 million of its annual revenue to buy back its native token, Aave (AAVE). As of Friday, it seemed the proposal had not yet received approval.
It remains uncertain how users of Pyth will react to the plan. In 2024, when Mango Markets suggested a buyback program for its MNGO tokens, co-founder Daffy Durairaj criticized the creators for “untrustworthy behavior and self-dealing.”
Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice
