Understanding PYTH Token Economics Governance Scope, Pyth DAO, Token Distribution

Comprehending PYTH Token Economics Governance Scope An Overview of Pyth DAO and Token Distribution

Source: PYTH; Compilation: Song Xue, LianGuai

1. Understand PYTH Token Economics

This article delves into the distribution of PYTH tokens to different participants in the Pyth network and its ecosystem. This distribution is a crucial step in bringing the Pyth network into a decentralized, self-sustaining, and permissionless state. On-chain governance is another key component of this goal.

The overall purpose of a token-based governance system is to enable token holders to guide protocol development. Therefore, the community must be prepared to engage in token-holder governance so that they can shape the network in an informed manner.

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2. Governance Scope and Pyth DAO

As stated in the whitepaper, Pyth Governance can help determine the higher-level parameters of other network mechanisms. On-chain governance is expected to be responsible for many decisions and actions, such as:

• Determining the amount of update fees.

• Determining the reward allocation mechanism for publishers.

• Approving other software updates for on-chain procedures on the chain.

• Determining how to list new tradable instruments (summaries) and their reference data (e.g., decimal places in prices, reference exchanges) on Pyth.

• Determining how to allow data providers to provide price information data.

Please note that new topics related to on-chain governance may be established by the DAO.

3. Token Distribution

• Token symbol: PYTH

• Maximum supply: 10,000,000,000

• Initial circulating supply: 1,500,000,000 (15%)

• Allocation: 85% of PYTH tokens are initially locked, and the locked tokens will be unlocked after 6, 18, 30, and 42 months following the initial token issuance.

• Token address: https://solscan.io/token/HZ1JovNiVvGrGNiiYvEozEVgZ58xaU3RKwX8eACQBCt3?ref=pyth-network.ghost.io

PYTH Redemption Schedule

4. Allocation

The following is the PYTH token allocation table based on the whitepaper.

Allocation of locked and unlocked PyTH tokens. Locked tokens will be unlocked 6, 18, 30, and 42 months after token issuance.

1. Publisher Rewards

22% – 2,200,000,000 PYTH

This allocation is reserved for Pyth Network data providers or “publishers”.

Publishers are responsible for publishing price data to the Pyth protocol. The “publisher rewards” allocation includes reserved tokens for various reward mechanisms and funding programs, to incentivize publishers to publish accurate and timely price data.

The purpose of this is to encourage more publishers to support new symbols that may lack the initial popularity or liquidity required for immediate network launch.

There are already reward mechanisms and funding programs in place to incentivize publishers to publish price information, so that the Pyth protocol can provide accurate and timely price updates.

Approximately 2% (50 million) of the 2.2 billion PYTH tokens are unlocked. The remaining PYTH tokens (2.15 billion) are subject to the aforementioned vesting schedule. Please note that these rewards can only be distributed to publishers after unlocking.

PYTH Publisher Rewards Vesting Schedule

2. Ecosystem Growth

52% – 5,200,000,000 PYTH

The “ecosystem growth” allocation is reserved for contributors to the Pyth Network, including developers, educators, researchers, strategic contributors, early content publishers, etc.

These tokens are intended to facilitate tangible initiatives, including funding research projects aimed at advancing the Pyth protocol, incentivizing developers to build complementary tools and resources, and supporting public education programs to raise awareness. This allocation aims to recognize and reward individuals and organizations that go above and beyond core contributors in promoting the expansion and vitality of the Pyth Network.

13% (700 million) of the 5.2 billion PYTH tokens are unlocked. The remaining tokens (450 million) are subject to the aforementioned vesting schedule.

PYTH Ecosystem Growth Vesting Schedule

3. Protocol Development

10% – 1,000,000,000

This portion of token supply is allocated to core contributors focused on building oracle tools, products, and infrastructure to expand the protocol, such as Douro Labs.

15% (150 million) of the 1 billion PYTH tokens are unlocked. The remaining tokens (850 million) are subject to the aforementioned vesting schedule.

PYTH Protocol Development Cash-out Schedule

4. Community and Release

6% – 600,000,000

Used for the initial launch stage and related activities and plans. All these 600 million PYTH tokens will be unlocked from day one, which means they can be freely used during the initial launch stage.

PYTH Community and Launch Unlocking Schedule

5. Private Sale

10% – 1,000,000,000

This category represents two rounds of historical financing from strategic contributors, who added value to the network in terms of consultation and infrastructure support. Please note that these financing rounds have ended and the allocation has been finalized.

All 1 billion PYTH tokens are locked and subject to the unlocking schedule mentioned above.

PYTH Token Private Sale Unlocking Schedule

There are currently no announcements regarding the governance of PYTH. You can stay updated on the latest news of the Pyth Network through official social media channels. We strongly advise readers to proceed with caution and take appropriate measures to protect themselves from unverified or unofficial channels and statements.

We would like to express our appreciation for the patience and continued support of the Pythian community throughout the years.

We can’t wait to hear your thoughts! Feel free to join the Pyth Discord and Telegram, and follow Pyth on X. You can also learn more about Pyth here.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!