This article delves into the specific allocation of PYTH tokens to different participants in the Pyth Network and its ecosystem.
Introduction
This article delves into the specific allocation of PYTH tokens to different participants in the Pyth Network and its ecosystem. This allocation mechanism is a crucial step for Pyth Network to move towards decentralization, self-sustainability, and permissionless status. On-chain governance is another key component of this goal.
Scope of Governance System and Pyth DAO
As stated in the whitepaper, Pyth governance can help determine the high-level parameters of other network mechanisms. The on-chain governance system is expected to be responsible for several important decisions and actions, such as:
- Determining the size of update fees.
- Determining the reward allocation mechanism for data publishers.
- Approving other software updates for cross-chain on-chain programs.
- Determining how to list new price feed data (feeds) on Pyth and their reference data (such as decimal places, reference exchange rates, etc.).
- Deciding how to allow data publishers to provide price feed data.
Please note that other new topics related to on-chain governance can also be established by the DAO.
Token Allocation Mechanism
Token Symbol: PYTH
Maximum Supply: 10,000,000,000
Initial Circulating Supply: 1,500,000,000 (15%)
Lockup Period: 85% of PYTH tokens are initially locked, and the locked tokens will gradually unlock after 6 months, 18 months, 30 months, and 42 months from the initial token launch.
Allocation Mechanism
The following image is the PYTH token allocation table provided in the whitepaper.
Data Publisher Rewards
22% — 2,200,000,000 PYTH
This portion of token allocation is reserved for data providers or "publishers" of the Pyth Network.
Data publishers are responsible for publishing price data to the Pyth protocol. The "data publisher rewards" token allocation consists of reserved tokens for various reward mechanisms and bonus plans to encourage data publishers to publish accurate and timely price data.
This is to encourage more data publishers to support the publication of new price feeds that may lack initial notoriety or liquidity and cannot immediately go live on the Pyth network.
Some reward mechanisms and bonus plans are already in place to incentivize data publishers to publish price feed data for the Pyth protocol to provide accurate and timely price updates.
Out of the 22 billion PYTH tokens, 2% (50 million) have already been unlocked. The remaining PYTH tokens (21.5 billion) will unlock gradually according to the above unlocking schedule. Please note that these rewards can only be distributed to data publishers after unlocking.
Ecosystem Growth
52% — 5,200,000,000 PYTH
The token allocation for "ecosystem growth" is a strategic token allocation portion reserved for contributors to the Pyth Network, including developers, educators, researchers, strategic contributors, early data publishers, etc.
This allocation is dedicated to driving feasible initiatives for the network, including funding research projects dedicated to advancing the Pyth protocol, incentivizing developers to build complementary tools and resources, and supporting public education programs to raise awareness. This allocation aims to recognize and reward individuals and organizations that have made core contributions to advancing the expansion and vitality of the Pyth Network.
Out of the 52 billion PYTH tokens, 13% (7 billion) have already been unlocked. The remaining PYTH tokens (45 billion) will unlock gradually according to the above unlocking schedule.
Protocol Development
10% — 1,000,000,000
This portion of tokens has been allocated to core contributors such as Douro Labs, who are focused on building oracle tools, products, and infrastructure to expand the decentralized data service products of the protocol.
Out of the 10 billion PYTH tokens, 15% (1.5 billion) have already been unlocked. The remaining PYTH tokens (8.5 billion) will unlock gradually according to the above unlocking schedule.
Community and Launch
6% — 600,000,000
This portion of PYTH tokens will be used for the initial launch phase and related community activities and plans.
All 600 million PYTH tokens in the "community and launch" token allocation portion will be fully unlocked on the launch day.
Private Sale
10% — 1,000,000,000
This portion of token allocation represents the two rounds of historical financing for Pyth Network, which provided funds from strategic contributors who added value to the network in terms of consulting and infrastructure support. Please note that these financing rounds have ended, and the allocation has been finalized.
All 10 billion PYTH tokens are currently locked and will unlock gradually according to the above unlocking schedule.
There are currently no announcements regarding the PYTH governance mechanism. You can stay updated on the latest developments of the Pyth Network through the official social media channels. We strongly advise readers to proceed with caution and take appropriate measures to protect themselves from unverified or unofficial channel information. We also want to express our gratitude to the Pythian community for their patience and continuous support over the years.
We want to hear your thoughts! You can join the Pyth Discord and Telegram, and follow us on Twitter to be the first to know about the latest developments in the Pyth ecosystem. You can also find more information about Pyth here.
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