With the successful launch of its permissionless mainnet, Pyth Network will be able to introduce token-led governance for the protocol in the future. Users participating in the ecosystem will now be able to communicate with Pyth Governance by blocking their PYTH tokens via the Pyth staking programme. Voting on proposals for community governance will be available to users.
Important protocol concerns related to on-chain governance include the data suppliers’ incentive scheme, the amount and cost of the oracle fees, and the ability to register price feeds on the network.
Contributors to Pyth Network envision transferring global financial data to blockchain technology. The network requests data for their protocol from leading financial institutions and decentralised businesses in order to do this. For the advantage of developers of decentralised applications, the Pyth Oracle is in charge of gathering the information needed to reliably and safely publish the pricing on-chain.
Pyth Network provided the permissioned mainnet in August 2021. Due to financial constraints, they set growth and protocol maximisation as their goals. Two years later, the network solved over 230 dApps, had over 40 blockchains, and collected data from 90 data sources. Pyth Network has now moved to its mainnet stage, which is permissionless.
Token owners will have the opportunity to propose, debate, and vote on protocol-related issues through on-chain governance, which will serve as the mechanism for supporting protocol changes. The Pyth Network ecosystem will make decisions collectively thanks to on-chain governance. This will bring together a wide range of stakeholders, including financial institutions, framework providers, and consumers of DeFi in addition to decentralised apps.
Holders of Pyth tokens can participate in the governance process of Pyth Network. To vote on proposals for community governance, token owners must stake their tokens in the Pyth staking programme. Every staked token casts one vote under the governance’s 1:1 coin voting system.
Every week, Pyth Governance conducts its business. Voting access is awarded to tokens that are staked at the beginning of the next term. Tokens that are not staked need to cool down for a week in order to be withdrawn. The vote weights are distributed equitably over the course of the epoch thanks to the epoch system. Some recommendations are implemented for a whole week using the voting weights that are relevant during that week.
Although Pyth Governance is applicable to the Pyth Network across several chains, it functions on the Solana mainnet-beta blockchain. Wormhole communications is used by the governance mechanism to communicate with Pyth contracts on several blockchains. Proposals are considered approved if the majority of voters concur.
As long as they meet the membership conditions, ecosystem participants that stake tokens to take part in Pyth governance are qualified to join Pyth DAO LLC.
Pyth DAO is creating a non-profit limited liability company with algorithmic control. In the near future, the Republic of the Marshall Islands will incorporate Pyth DAO.