Pyth to launch reserve using buybacks from DAO treasury funds
Analysis
Price Impact
HighPyth network plans to use approximately 33% of its protocol revenue through its dao to buy back pyth tokens from the open market to establish a reserve. this action directly creates demand and reduces the circulating supply, which are strong bullish signals for a token.
Trustworthiness
HighThe information is a direct announcement from the pyth network, published on its blog and reported by a reputable crypto news outlet (cointelegraph). the details of the buyback mechanism are clearly stated.
Price Direction
BullishThe continuous buyback of pyth tokens using a significant portion of protocol revenue will lead to increased buying pressure and a reduction in the available supply on the open market. this fundamental change in tokenomics is expected to support and potentially drive up the token's price over time, despite its recent poor performance.
Time Effect
LongThe buyback program is an ongoing initiative utilizing a portion of recurring revenue. therefore, its positive impact on supply-demand dynamics and price appreciation is expected to manifest gradually and sustainably over an extended period.
Original Article:
Article Content:
Turner Wright 4 minutes ago Pyth to launch reserve using buybacks from DAO treasury funds The network’s reserve will consist of purchases of the network’s native PYTH token, utilizing approximately 33% of the protocol’s revenue through the DAO. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED The Pyth Network, a blockchain oracle provider, said it will convert a portion of its revenue into PYTH token purchases as part of a reserve strategy. In a Friday blog post, Pyth said the tokens it buys on the open market with one-third of the protocol’s revenue through its decentralized autonomous organization (DAO) would constitute the network’s reserve. The network said the strategy was designed to increase revenue and token purchases. “[I]t’s time to rewrite the market data economy on a global level,” said Pyth. Source: Pyth The price of the Pyth Network token ( PYTH ) has dropped by more than 80% over the past year, despite a brief surge when the platform deepened ties to the US government . The Trump administration announced in August that the company and Chainlink would be responsible for publishing the country’s economic data onchain. According to data from Nansen, the PYTH price decreased by about 1.3% over the previous 24 hours, reaching about $0.063 at the time of publication. Related: Grayscale launches Pyth investment fund Aave DAO proposed a similar buyback initiative in October The DAO behind the Aave protocol introduced a proposal that would use $50 million of its annual revenue to repurchase its native token, Aave ( AAVE ). As of Friday, it did not appear that the proposal had been approved. It’s unclear how Pyth users may respond to the plan. In 2024, when Mango Markets suggested a buyback program to purchase its MNGO tokens, co-founder Daffy Durairaj accused the creators of “untrustworthy behavior and self-dealing.” Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice # Cryptocurrencies # Business # Investments # DAO # Tokens # Nansen Add reaction