Pyth Network to Deploy 33% of Protocol Revenue Toward Monthly PYTH Token Buybacks

Pyth Network is preparing to roll out a major economic upgrade as the oracle protocol finalizes plans to channel 33% of its monthly revenue toward open-market PYTH token buybacks. 

The move signals Pyth’s growing focus on long-term sustainability, community alignment, and liquidity stability as the ecosystem continues to expand across multiple blockchains.

A New Strategy to Reinforce PYTH’s Market Strength

At the ongoing Solana Breakpoint conference, the Pyth network has announced the launch of PYTH Reserve, a structural mechanism designed to convert network revenue into automatic token buybacks. 

The Pyth network has programmed the reserve to deploy one-third, or roughly 33%, of the platform’s revenue monthly to purchase PYTH tokens on the open market, thereby increasing demand predictability. This steady buyback flow is also expected to support liquidity, reduce circulating supply over time, and create consistent demand for the token regardless of broader market volatility.

For many in the community, the strategy mirrors corporate buybacks, an approach often employed by other blockchain networks to enhance holders’ value. In Pyth’s case, the mechanism adds a predictable, revenue-driven support system that ties token performance directly to the protocol’s success.

Rising On-Chain Activity Fuels the Decision

The change comes as Pyth’s revenue continues to grow, driven by increasing demand for real-time data across major blockchain networks. As decentralized finance platforms, perpetual exchanges, and lending protocols increasingly rely on accurate pricing, Pyth has expanded its coverage to encompass hundreds of assets across multiple chains.

This surge in on-chain activity has positioned Pyth as one of the fastest-growing decentralized oracle providers, competing directly with established names while carving out a strong niche in high-frequency data delivery.

Interestingly, Pyth network announced that one of its products, Pyth Pro, has surpassed $1 million annualized revenue in its first month, indicating Increased demand. Pyth Pro, designed to track real-time market data across multiple asset classes and geographies, recorded over 80 new active subscribers and gained 10 inbound organic leads per week. According to Pyth developer and contributor Michael James, Pyth Pro’s annual recurring revenue is expected to surge to $50 million in the next 12-18 months.

Pyth Network Community First Approach

Pyth network includes that the monthly funds designated for the buybacks will pass through its DAO, giving the community a measure of authority over the buybacks. Furthermore, the Pythian council will conduct a quarterly pricing review of the mechanism, examining on-chain activity and adjusting fees as necessary to optimize revenue. 

Meanwhile, it’s also worth noting that the directing of protocol revenue back into the token strengthens Pyth’s long-term sustainability and rewards those who participate in governance.

According to Pyth developer James, the program is set to begin this month with an initial buyback estimated at around $100,000 to $200,000. However, James expects that amount to increase in 2026 as network revenue spikes.