Pyth launches token buyback program, allocating 33% of DAO treasury to monthly PYTH purchases

Pyth Network, a data protocol covering crypto and other asset classes, has launched a token buyback program as it looks to expand its revenue and support the value of its PYTH token.

The buyback program — formally called the “PYTH Reserve” — uses network revenue to acquire tokens each month. Revenue flows into the Pyth DAO treasury, and “33% of the total treasury balance” will be used each month to purchase PYTH on the open market, Michael James, head of institutional business development at Douro Labs (Pyth developer) and a contributor to Pyth, told The Block.

The program begins this month, with the first buyback expected to total $100,000–$200,000, James said, noting that the DAO treasury currently holds around $500,000. Pyth expects buyback amounts to grow as revenue increases in 2026 and beyond, James said.

Pyth says revenue is growing, targets $500 million ARR

James said Pyth Pro — the network’s newest data product, offering real-time market data across asset classes and geographies — is seeing strong early traction. Since launching in late September, Pyth Pro has reached $1 million annual recurring revenue (ARR) in its first month, onboarded 80+ active subscribers, and received around 10 inbound organic leads per week, he said.

“Based on pipeline projections for the next 12–18 months, we’re targeting $50 million ARR,” James added.

He said the broader data industry — currently a $50 billion market growing 5–6% annually — could reach $80–90 billion by 2035. But with the rapid rise in real-world asset tokenization, expanding institutional demand, and AI-driven data consumption, James believes it could be even larger, closer to $100–125 billion by 2035.

“Our first mission is to have 1% of today’s $50 billion market, which puts us around $500 million ARR,” he said.

Beyond Pyth Pro, Pyth’s suite includes Pyth Core (crypto market data), Pyth Entropy (an onchain random number generator), and Pyth Express Relay (a plug-and-play liquidity aggregator for trading applications).

Pyth says it has supported over $2.3 trillion in transaction volume (transactions relying on Pyth data), integrates over 100 blockchains, and serves more than 600 applications.

James said Pyth provides data across crypto, equities, forex, and commodities, with customers spanning centralized exchanges, decentralized exchanges, infrastructure providers, market makers, and prediction markets.

Aiming for ‘token utility and value accrual’

James said the buyback program is intended to drive “token utility and value accrual” by tying PYTH more closely to network adoption. Purchases will occur once per month, be fully onchain, and tokens will be held in the PYTH Reserve, he said. James declined to provide long-term estimates for any impact on PYTH’s circulating supply.

Token buybacks have become a notable trend in crypto this year. According to CoinGecko, ten projects accounted for 92% of token buyback spending in 2025, led by Hyperliquid with more than $644.64 million in revenue deployed. Other active buyers include LayerZero, Pump.fun, Raydium, Rollbit, and Bonk, per CoinGecko.