Pyth Network, a prominent data oracle protocol, has launched a "PYTH Reserve" program to bolster its token's value and increase utility. The initiative involves monthly buybacks of PYTH tokens using 33% of the Pyth DAO treasury funds, with the repurchased tokens forming the PYTH Reserve. This move aims to directly link product adoption with network value by channeling protocol revenue into systematic PYTH token purchases.
The buyback program officially started this month, with initial buybacks expected to range from $100,000 to $200,000. Michael James, Head of Institutional Business Development at Douro Labs, a Pyth developer, noted that the DAO treasury currently holds around $500,000. Pyth Network anticipates that buyback amounts will increase as revenue grows in 2026 and beyond.
The PYTH Reserve will be funded by network revenue derived from several sources, including Pyth Pro, Core price feeds, Pyth Entropy, and Pyth Express Relay. Pyth Pro, the network's newest data product offering real-time market data across asset classes, has already demonstrated strong early traction, reaching $1 million in annual recurring revenue (ARR) in its first month. The network is targeting $50 million ARR within the next 12-18 months.
The buyback program is intended to drive token utility and value accrual by tying PYTH more closely to network adoption. Purchases will occur monthly, be fully on-chain, and the acquired tokens will be held in the PYTH Reserve. The initiative is designed to reduce the circulating supply of PYTH tokens, demonstrate the DAO's confidence in the network's long-term value proposition, and create a built-in support mechanism to stabilize token prices during market volatility.
Pyth Network's move comes at a time when token buybacks have become a notable trend in the cryptocurrency space. According to CoinGecko, ten projects accounted for 92% of token buyback spending in 2025, led by Hyperliquid.
The launch of the PYTH Reserve signifies a maturation phase for Pyth Network's ecosystem management. By actively supporting token value through structured mechanisms, the network aims to position itself for sustainable growth, combining decentralized governance with strategic financial management.
The Pyth DAO, comprising PYTH stakers, governs the Pyth Network and determines high-level parameters for its protocol mechanisms. The DAO will oversee the execution of the PYTH token purchases.
With over $2.3 trillion in cumulative trading volume and integration into over 600 applications, Pyth Network is shifting its focus from pure growth to sustainable monetization and value accrual. The PYTH Reserve is designed to ensure the network can compound economic value as adoption accelerates.
