Pyth Network Allocates 33% of Treasury for Monthly Buybacks

Pyth Network is launching the PYTH Reserve, an essential program for its users. It will use 33% of the Pyth DAO treasury each month to buy back PYTH tokens from the market. These purchases will be transparent and open, recorded on the blockchain via a multisig wallet.

The tokens repurchased will be permanently locked in the reserve. The program starts now and is one of the most substantial buyback efforts in the Oracle sector, backed by revenue. The first buyback this December is expected to be between $100,000 and $200,000, and this amount will increase as the network earns more revenue.

How the PYTH Reserve Works

The buybacks are mainly funded by Pyth Pro, the network’s data product for institutions launched in early 2025. In its first month, Pyth Pro earned over $1 million in annual revenue. Other income sources include fees from on-chain pull-oracle services, Express Relay services, and upcoming subscription offers for traditional finance institutions. 

Every 30 days, the DAO treasury is checked, and one-third of the assets—currently about $500,000—goes to the buyback executor. The executor then buys tokens on major centralized and decentralized exchanges at market rates to limit price impact. Instead of spending proposals, the fixed 33% allocation removes the need for ongoing governance decisions. 

Tokens that go into the Reserve can only be unlocked through a future proposal that must get a 67% supermajority vote. This keeps the tokens out of circulation for the long term. The system links PYTH token usage directly to the network’s activity, creating predictable pressure to reduce the token supply as adoption grows.

Immediate Market Reaction

The announcement caused an immediate 3.5% price increase, pushing PYTH to $0.0650 and lifting its market capitalization to $384 million at the time. Trading volume surged 180% within hours, particularly on Binance, Bybit, and Uniswap liquidity pools. On-chain analytics already detect accumulation exceeding 1.2 million tokens by wallets linked to the Pyth ecosystem. 

Analysts now target $0.12–$0.18 in the medium term, assuming continued execution and improving macro conditions. The program is similar to Chainlink’s Strategic LINK Reserve, which started in August 2025. Since then, the firm has bought over 1.1 million LINK tokens using protocol fees. This has contributed to more than 80% price increase. 

Meanwhile, recent technical improvements, such as the launch of Pyth Rates for U.S. Treasury yields, and partnerships in the $50 billion institutional market data industry, should enhance revenue in 2026. While there are risks from regulations and competition, the PYTH Reserve positions the token to benefit from the network’s growing business activity.

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