Pyth Network (PYTH) has announced a major transition in its infrastructure and economic model, moving from a token-incentive based system to a sustainable, revenue-driven growth strategy. The decision, formalized through DAO-approved proposals OP-PIP-100 and OP-PIP-103, includes retiring the original Pythnet appchain and ending emissions from the Oracle Integrity Staking (OIS) program.
Retirement of Pythnet and OIS Program
Pythnet, the appchain that has powered Pyth’s price feeds since 2021, is being phased out gradually throughout 2026. The OIS program, launched in late 2024 with an allocation of 100 million PYTH tokens to incentivize data quality from publishers, will see its reward rate parameter (Y) set to zero before the fund is depleted at the end of April 2026, preventing accounting discrepancies. Notably, no slashing proposals were ever submitted during the program's lifetime, and staking and slashing functions will remain active.
New Infrastructure: Pyth Lazer and Core Products
The network’s focus is shifting to Pyth Lazer, a next-generation infrastructure offering lower latency, broader asset coverage, and institutional distribution. Two core products run on Lazer: Pyth Pro, which unifies over 3,000 price feeds across equities, futures, ETFs, commodities, currencies, cryptocurrencies, and fixed-income instruments for traditional financial firms via subscription APIs, and the Data Marketplace, which incorporates exclusive datasets from institutions such as Euronext FX, Fidelity Investments, Tradeweb, SGX FX, and OTC Markets Group. Adoption has been driven by inbound demand, with recent integrations including Polymarket, Kalshi, Coinbase, OKX, BitMEX, and Bitget.
Revenue-Driven Economic Model
The most significant shift is the move from token-based subsidies to a real-revenue engine. For several months, the PYTH Reserve has been converting protocol revenues into monthly open-market token purchases executed by the DAO treasury. To date, approximately 12 million PYTH tokens have been acquired through this mechanism. Revenues are generated from Pro, Core, Entropy, Express Relay, and the Marketplace. Each month, the DAO allocates one-third of its treasury balance to these purchases. This marks a fundamental change from growth based on token incentives to a self-sustaining, revenue-generating structure.
