Pyth DAO approves 100% Rule directing all product revenue to open-market PYTH token buybacks, up from one-third previously.
Regulation & Gov ·
Pyth DAO has approved the "100% Rule," a governance proposal that directs all product revenue toward open-market buybacks of PYTH tokens, increasing the allocation from the previous one-third framework. The initiative represents a shift in capital allocation strategy designed to create a direct supply-reduction mechanism tied to revenue performance.
The timing of this policy change follows strong commercial momentum. Pyth ended Q3 with $11.49M in active annual recurring revenue, up 86.5% quarter over quarter, driven by growth across Pyth Pro ($9.68M ARR) and Pyth Indices ($1.81M ARR). The network now serves 276 paying accounts and has expanded into multiple verticals including real-world-asset perpetuals on exchanges, prediction market infrastructure, and financial data for AI agents.
The buyback mechanism's effectiveness will depend on sustained revenue growth. Key open questions include whether Pyth can maintain its current expansion rate across exchanges, prediction markets, and emerging AI use cases, and whether the redirect of all revenue to token buybacks—rather than development or operations—will impact the network's competitive positioning or product roadmap. The long-term supply impact and any price effects remain contingent on future revenue trajectory.