With the constant growth of protocols using pyth price feeds, as result the revenue also increases.
According to GPT this is the types of revenue streams pyth currently has:
1. Fees from Pyth Data Feeds (Pull Oracle Model)
- Pyth operates on a pull oracle model, where users (DeFi protocols, dApps, and traders) pay to access real-time price feeds.
- Every time a blockchain application requests and consumes Pyth’s price feeds, they pay a fee to the network.
- This fee is distributed among data providers and stakers who support the network.
2. Pythnet Transaction Fees
- Pyth runs on its own specialized blockchain, Pythnet, which helps relay price data across multiple chains.
- When users interact with Pythnet (e.g., fetching data from Pyth’s oracle services), they pay fees in PYTH tokens or other supported assets.
3. Revenue from Institutional & TradFi Partnerships
- Pyth partners with traditional financial firms and institutional players (market makers, exchanges, and hedge funds).
- These institutions contribute high-quality price data and, in return, get a share of the revenue when their data is used by DeFi protocols.
- Example: A crypto exchange or DeFi protocol using Pyth’s price feeds pays fees, which are then shared with data contributors.
This way it’s able to conclude PYTH has enough sustainable ways of revenue.
Using some of that revenue to do frequent buybacks of token, not only would incentivize more long-term investors and attract more potential new investors, but also would attract more newcomers mainly from other protocols (Via sponsors) resulting in more future revenue.
How doing frequent buybacks would incentivize long-term investors?
- A major portion of those buybacks would be sent to an additional pool for OIS stakers, although only stakers with at least 45 consecutive staking days would be eligible for this rewards.
How often would rewards be distributed to eligible OIS stakers?
- Rewards would be distributed every thursday, same as current staking rewards pool from publishers.
How would emissions be calculated?
- As an example: PYTH made 10k$ worth of revenue in 1 week.
- After doing the PYTH buyback, those 10k$ worth of PYTH would be sent to the additional staking pool only for eligible OIS stakers.
- In this example the 10k$ would be linearly distributed during one year, meaning ~191,68$ every thursday.
Note: This additional pool would only be used to distribute rewards depending on the total amount of PYTH staked on publisher pools, not allowing OIS stakers to stake on this aditional pool.
Let me know your thoughts in the comments and if I should add something else.