Pyth Network [PYTH] has gained roughly 16% across two days after its DAO approved a new rule connecting product income with token purchases.
The policy creates a recurring source of demand for PYTH. But the amount purchased will depend on the money Pyth’s products generate.
Every dollar received will now buy PYTH
Under the newly approved “100% Rule,” all funds received by the Pyth DAO from its products will go toward accumulating PYTH.
Previously, the DAO committed one-third of its non-PYTH balance each month. Every transfer also required a separate community vote.
The new system provides standing authorization for future purchases, where stablecoins received by the DAO will be exchanged for PYTH on the open market and moved into its reserve.
According to the announcement, these purchases will still follow existing safeguards, and that includes a 5% slippage limit and a maximum of $25,000 per transaction. Pyth said each acquisition will be recorded onchain, and there will be monthly reports.
The first purchases under this new rule were made on September 30. Pyth’s reserve had about 42 million tokens when the announcement was made.
These changes come as its commercial operations expand, with its active annual recurring revenue reaching $11.49 million in September, rising 86% quarter over quarter.
Pyth crypto extends its rally
PYTH climbed 10.04% on Thursday [the last session] before adding another 5.70% at the time of this writing. It was near the $0.0857 price level at the time of this writing after briefly reaching $0.0878.
The continued rise suggests that buyers are still interested, even after the initial announcement. PYTH was also trading above its key price averages, showing that the recent upward trend remained intact.
But it was approaching the $0.088–$0.090 price area, and this is where sellers could begin to take profits. Its trend was also close to overheated levels, but it had not crossed that area.
If PYTH is able to go above the $0.090 price area, the rally could have more room. But if buyers lose control, the $0.080 price area looks like the first nearby support, followed by the recent trend level around $0.074.
The reserve purchases are not token burns. Tokens bought by the DAO will still exist and may be used to support contributors, builders, or other network activities.
Final Summary
- PYTH gained about 16% across Thursday and Friday.
- The DAO will direct the product income it receives toward open-market PYTH purchases.
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