Pyth Network is introducing a new monthly token buyback initiative designed to boost PYTH’s value and strengthen its connection to network growth.
Key Takeaways
- Pyth Network has launched the “PYTH Reserve”, a program that will use 33% of DAO treasury revenue each month to buy PYTH tokens on the open market.
- The initiative is designed to increase token utility, transparency, and long-term value, tying PYTH directly to network adoption.
- Pyth Pro, the network’s latest product, has already reached $1 million ARR in its first month, and aims for $50 million in the next 12 to 18 months.
- Pyth serves over 600 applications across 100 blockchains, powering more than $2.3 trillion in transaction volume to date.
What Happened?
Pyth Network, a decentralized data oracle protocol, has launched the PYTH Reserve, a token buyback program funded by 33% of its DAO treasury revenue. The reserve will purchase PYTH tokens monthly on the open market, with the goal of reinforcing the token’s value as adoption grows. The first buyback is expected to range between $100,000 to $200,000, based on the current DAO treasury balance of around $500,000.
Introducing the PYTH Reserve: turning real revenue growth into sustainable network value.
— Pyth Network 🔮 (@PythNetwork) December 12, 2025
Pyth Pro surpassed $1M annualized revenue in its first month, and that revenue now fuels systematic PYTH purchases on the open market.
More adoption. More revenue. More value. Let’s dive… pic.twitter.com/NqodrKfGoK
Pyth Reserve Connects Revenue to Token Growth
The PYTH Reserve is a new structural mechanism that turns network revenue into systematic token acquisition. This process, which will be fully onchain, is designed to scale with growing institutional adoption and reinforce the PYTH token’s role in the ecosystem.
Michael James, head of institutional business development at Douro Labs and a Pyth contributor, confirmed that 33% of total treasury funds will be used each month to purchase tokens on open markets. These tokens will be held in the newly established PYTH Reserve. While no long-term estimates were given about the impact on circulating supply, the program is expected to grow as Pyth’s revenue increases.
The buyback initiative is not just a treasury maneuver. It serves a broader purpose: driving value accrual for PYTH holders by tying the token directly to revenue and adoption metrics.
Rapid Growth of Pyth Products
The PYTH Reserve launch follows strong traction for Pyth Pro, the network’s new institutional-grade product offering real-time, multi-asset market data.
- $1 million ARR in its first month.
- 80+ active subscribers onboarded.
- Around 10 inbound leads per week.
- $50 million ARR goal within 12 to 18 months.
Pyth’s broader product suite also includes:
- Pyth Core: Crypto price feeds
- Pyth Entropy: Onchain random number generator
- Pyth Express Relay: Plug-and-play liquidity aggregator
These tools have powered over $2.3 trillion in transaction volume, with more than 2,000 real-time price feeds and integration across 100+ blockchains.
Competing Strategies and Market Challenges
Pyth is not the only protocol adopting buyback strategies. The Aave DAO recently proposed a $50 million token repurchase plan, though it remains unapproved. However, buybacks can also spark controversy, as seen when Mango Markets faced criticism in 2024 for proposing a similar program.
Despite these risks, Pyth is positioning its program as a transparent, scalable, and community-aligned mechanism. Still, the PYTH token has struggled in the market, dropping over 80% in the past year, with a price of about $0.063 at the time of publication.
CoinLaw’s Takeaway
In my experience, projects that align economic incentives with real usage tend to survive longer and build more trust. Pyth’s move to dedicate a fixed share of its revenue to buy back tokens every single month sends a strong signal. It’s not just a short-term price support trick. It’s about building a financial backbone for a network that already moves trillions in value and serves hundreds of apps. I found the combination of rapid revenue growth and transparent buybacks especially promising. If adoption continues at this pace, this could be one of the more meaningful token economic designs in DeFi.
