Gm Pythians!
Abstract
The Solana Name Service (SNS) team has been working on a new smart contract to administer and issue subdomains to allow .sol owners to create User-based Identity Systems (UIS). We would like to work with Pyth’s community to be the first to use this UIS. The smart contract is currently undergoing an audit by Halborn and is expected to be completed within the next 2/3 weeks.
Minting Pyth subdomains will cost a specific amount of PYTH tokens and these proceeds will be collected by the Pyth DAO Treasury. It will be up to the Pyth community to discuss and decide the desire to partake in such an initiative and if yes, the pricing of the Pyth subdomains.
Rationale
SNS allows users to get a unique and human-readable username (e.g. pyth.sol) instead of a public key. As of today, over 240,000 amount of .sol domains have been registered, 146,000+ have been traded at least once and there are currently over 107,000 wallets holding at least 1 .sol domain.
The Pyth Network community is among the strongest and largest within DeFi (especially within Solana). With the launch of SNS Pyth subdomains (e.g. zarpithya.pyth.sol), the Pyth DAO is in a prime position to:
- Create its own User-base Identity Systems that are composable within the entire Solana DeFi Ecosystem
- Offer a community-binding product
- Generate revenue from the sales proceeds of .pyth subdomains for the DAO
The SNS Treasury will receive 10% of each registration.
Proposed Plan and Feasibility
The Pyth DAO needs to decide on the pricing of the subdomains. Pricing is based on the length of the subdomains, for example, the price schedule could be as follows:
| # of characters | Cost in $PYTH |
|---|---|
| 1 | 1000 PYTH |
| 2 | 750 PYTH |
| 3 | 500 PYTH |
| 4 | 100 PYTH |
| 5+ | 10 PYTH |
There are no major technical lifts required on the Pyth DAO side since everything has been built by the SNS team and that minting will happen on sns.id. The Pyth DAO, however, would need to decide on the following parameters:
- Price schedule (see above)
- Authority address: used to change parameters of the subdomain registrar e.g change the price schedule
- Fee vault: address used to receive the registration proceeds
Questions or uncertainties
- How should domains be priced?
- How often will the DAO review pricing and on which criteria?