Pyth Launches Token Buyback Program After Pyth Pro Hits $1M ARR
What Is Pyth Changing With Its New Buyback Program?
Pyth Network has introduced a recurring token buyback program that will use 33% of its DAO treasury balance each month to purchase PYTH on the open market. The initiative, called the “PYTH Reserve,” is funded directly by revenue generated across the protocol’s data products. Michael James, head of institutional business development at Douro Labs and a contributor to Pyth, told The Block that the program begins this month.
The DAO treasury currently holds around $500,000, putting the first buyback at an estimated $100,000 to $200,000. James said the amounts should rise as network revenue increases through 2026. The plan ties buyback size to treasury growth rather than setting a fixed monthly target.
For a data protocol spanning crypto, equities, forex and commodities, the move links network activity more tightly to the token’s economics. Purchases will occur once a month, executed fully onchain, with acquired tokens held in the PYTH Reserve wallet.
Investor Takeaway
Pyth is shifting from static token design toward revenue-linked buybacks. Monthly purchases tied to treasury inflows add a predictable mechanism for token demand as usage grows.
How Fast Is Pyth’s Data Business Growing?
The buyback program arrives as Pyth reports early traction from Pyth Pro, its real-time market data product covering multiple asset classes and geographies. Launched in late September, Pyth Pro has already surpassed $1 million in annual recurring revenue (ARR), onboarded more than 80 subscribers, and is receiving about 10 organic inbound leads each week, according to James.
“Based on pipeline projections for the next 12–18 months, we’re targeting $50 million ARR,” he said. James added that the broader data industry — currently valued at roughly $50 billion — could grow to $80–90 billion by 2035. He argued that tokenization, wider institutional adoption and heavier data demand from AI systems could push the figure higher, 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. That target would place Pyth in the same revenue bracket as major legacy financial-data vendors.
Beyond Pyth Pro, the protocol offers Pyth Core for crypto markets, Pyth Entropy for onchain randomness, and Pyth Express Relay, a liquidity-routing tool for trading applications. The network says it has supported more than $2.3 trillion in transaction volume, integrates with over 100 blockchains, and serves more than 600 applications.
Who Uses Pyth and Where Is the Demand Coming From?
James said Pyth’s data feeds are used by centralized exchanges, decentralized exchanges, trading infrastructure firms, market makers and prediction markets. The protocol distributes data across categories that include crypto, equities, foreign exchange and commodities. He described growing demand from both Web3-native platforms and firms entering tokenized markets.
This diversification gives Pyth a large surface area for paid data products. With more market infrastructure shifting onchain and more applications requiring granular price data, the company expects sustained growth in its subscriber base. The early traction of Pyth Pro suggests that customers see value in alternative data sources that blend crypto-native delivery with traditional financial coverage.
Why Token Buybacks Are Becoming More Common in Crypto
Pyth’s plan arrives during a broader rise in protocol-level buybacks across the crypto sector. According to CoinGecko, ten projects accounted for 92% of all buyback spending in 2025, led by Hyperliquid, which deployed more than $644.64 million in revenue toward buybacks. Other active buyers include LayerZero, Pump.fun, Raydium, Rollbit and Bonk.
James described Pyth’s approach as a way to support “token utility and value accrual,” noting that the buybacks reinforce the connection between the protocol’s growth and PYTH’s role inside the ecosystem. He did not provide long-term expectations regarding circulating supply or how often reserve accumulation might change the token’s economic profile.
The mechanism mirrors revenue-sharing models seen in traditional finance, but without dividends. Instead, the DAO uses revenue to purchase tokens in the open market, creating direct monthly demand from protocol activity. With buyback schedules determined by treasury size, the program effectively scales with adoption.
Investor Takeaway
Buybacks tied to revenue give PYTH a clearer economic link to protocol usage. If Pyth Pro and other products continue expanding, the reserve could become a material source of recurring token demand.