An altcoin saw a sudden price surge following a buyback announcement by its DAO (Database Owner). Here's what you need to know
Blockchain-based data provider Pyth Network (PYTH) announced a significant decision that will directly impact its token economy following growth in revenue. The project’s decentralized governance organization (DAO) has agreed to redirect all revenue generated from its products and transferred to its treasury towards PYTH token buybacks
The “100% Rule,” announced by Pyth Network and approved under proposal OP-PIP-136, stipulates that all revenue generated by the DAO from Pyth products must be used to grow the PYTH reserve. Under the previous system, the DAO allocated only one-third of its treasury assets (excluding PYTH) to monthly token purchases
According to the new mechanism, revenues received by the DAO as stablecoins will be used to purchase PYTH from the open market through a pre-authorized council. The purchased tokens will then be transferred to the DAO treasury. Revenues obtained directly in PYTH will be added to reserves without making new purchases from the market
Pyth Network has reported that its current PYTH reserve has reached approximately 42 million tokens. However, the new regulation covers only the revenue share transferred to the DAO and approved under the relevant proposal, not all of the protocol’s revenue
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