Pyth DAO Sends 100% of Product Revenue Into PYTH Buybacks

Pyth's DAO just turned its whole revenue stream into a standing buy order for its own token. Under a proposal called OP-PIP-136, every dollar the DAO receives from Pyth products now goes toward buying PYTH on the open market and locking it into the network's reserve.

From one-third to all of it

The old rule, adopted in December 2025, was cautious. Buybacks were capped at one third of the DAO's non-PYTH treasury balance each month, and every transfer needed its own governance vote.

That is twelve separate votes a year just to authorise something the DAO had already agreed on, and the results under that system were shrinking. Monthly purchases slid from roughly 2.75 million PYTH in March to 669,662 by August.

The new rule removes the ceiling entirely and replaces the recurring votes with one standing authorization. It also sweeps in non-PYTH assets the DAO already holds, which the previous framework left untouched.

Where the money actually comes from

Pyth's recurring revenue reached $11.5 million in September, up 86% quarter over quarter. Not all of that reaches the DAO, though. It collects about 60% of revenue from Pyth Pro and other products, while Douro Labs keeps the other 40%.

So the buyback budget is the DAO's slice, not the headline number. Most of that revenue is market data: Pyth prices more than 94% of tracked RWA perpetual volume, over $2 trillion in the last quarter alone. Kalshi and Coinbase both named the network in regulatory filings for their perpetual markets.

What holders should take from this

A buyback is not a price floor. The rule ties PYTH demand to revenue receipts instead of a fixed purchase size, so accumulation scales with the business and stalls if the business does.

Execution stays boxed in by guardrails: a 5% slippage cap, a $25,000 ceiling per trade, aggregator routing, and monthly public reporting. The reserve already holds about 41 million PYTH.

Mike Cahill, CEO of Douro Labs, called the commitment the strongest alignment the network has had. That is a fair read of the governance shift, though the size of the bid still depends on revenue that has to keep growing.