Pyth DAO Sends 100% of Product Revenue to PYTH Buybacks

The Pyth Network DAO has approved OP-PIP-136, a rule directing 100% of the revenue it receives from Pyth’s commercial products into open-market PYTH purchases, according to Cryptobriefing. The policy, nicknamed the “100% Rule,” was announced on October 8, 2026, and replaces a framework adopted in December 2025 that had been in place for less than a year.

Under the earlier arrangement, OP-PIP-87, buybacks were capped at one-third of the DAO’s non-PYTH treasury balance each month, and every round required its own separate vote. OP-PIP-136 removes both the cap and the recurring vote, sending the DAO’s share of revenue straight into the PYTH Reserve. Cryptopolitan reported that the proposal was filed by DAO contributor KemarTiti and passed on September 24.

Key facts

• OP-PIP-136 commits 100% of the DAO’s eligible product revenue to PYTH buybacks, replacing the one-third-of-treasury cap under OP-PIP-87 and eliminating the monthly vote.
• Pyth’s annualized recurring revenue reached $11.5 million, an 86% quarter-over-quarter increase that Cryptobriefing attributed mostly to Pyth Pro subscriptions.
• The DAO keeps roughly 60% of Pyth Pro revenue, with Douro Labs retaining the other 40%, so the buyback budget applies to the DAO’s cut rather than the full $11.5 million.
• The Pythian Council Ops Multisig executes purchases with each transaction capped at $25,000 and maximum slippage set at 5%; bought PYTH cannot be sold and stays in the Reserve.
• Cryptopolitan reported monthly purchases had shrunk to about 669,662 PYTH in August from roughly 2.75 million in March, a drop of about three-quarters in five months.

A shrinking monthly formula replaced by a standing order

Cryptopolitan reported that the old rule was buying progressively less PYTH as the non-PYTH treasury balance fell, and as Douro Labs increasingly paid the DAO in PYTH rather than USDC following an April forum proposal that gave it the option to pay in tokens. The Ideas Bank post that led to the new proposal, dated September 9, described the old method as “increasingly disconnected” from the network’s revenue growth.

The revenue base is drawn from Pyth Pro subscriptions, Listing as a Service, the Data Marketplace and Pyth Indices. Cryptopolitan reported the DAO’s share is 60% of Pyth Pro subscription revenue, 90% of Listing as a Service and 60% of the Marketplace, and that Pyth Indices added $1.81 million in fixed ARR. The policy also moves the DAO’s existing non-PYTH treasury assets into the same process, beginning with a transfer of 323,428 USDC and 90 SOL to the Pythian Council’s execution multisig. The council still cannot sell, borrow against or give away the PYTH without a separate DAO vote.

Pyth Network is an oracle that feeds outside data, such as asset prices, into blockchains. Cryptobriefing reported that Pyth’s data underpins over 94% of recent trading volume in Real World Asset perpetual contracts, and Cryptopolitan wrote that the company attributes much of its growth to perpetual futures on real-world assets including stocks, gold, oil and indices. Cryptopolitan also reported that Kalshi named Pyth the only price source for its CFTC-cleared gold and silver perpetual futures, which began trading in September, and that Coinbase named Pyth days later in an SEC filing for single-name equity perps.

Why it matters

For PYTH holders, the source of buying pressure has changed. Buyback size is now tied directly to product revenue rather than to a treasury balance and a monthly vote, so faster revenue growth means larger purchases and a slowdown means smaller ones. That also removes a recurring checkpoint where tokenholders could pause or adjust spending; changing course again would require another proposal. Because bought tokens cannot be sold, the Reserve functions as a one-way accumulator that the DAO cannot rebalance into other assets without amending the rules.

Not everyone treats buybacks as a reliable signal. Cryptopolitan cited Elton Shehdula, head of research at Allium, warning that buybacks reduce supply and add demand but do not guarantee price gains, and reported Allium Labs data showing crypto projects spent a record $638 million buying back their own tokens in 2026. Mike Cahill, CEO of Douro Labs and a core Pyth contributor, said in the October 8 post that committing this revenue to the Reserve is “the strongest alignment this network has had,” according to Cryptopolitan.

What to watch

The reports differ slightly on the Reserve’s size: Cryptobriefing put it at approximately 41 to 42 million PYTH, while Cryptopolitan cited about 41 million with Pyth’s live tracker showing 42 million after the first acquisitions under the new authorization on September 30. How much the new rule affects PYTH’s supply dynamics will depend on how revenue compares with the token’s trading volume and any unlocks entering circulation, so the next revenue disclosures and buyback executions are the figures to track. This article is not financial advice, and crypto markets are volatile and uncertain.

Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.

Sources: Crypto Briefing, Cryptopolitan