Pyth Network has successfully come up with its permissionless mainnet, which will open the doors for futuristic token-led governance for the protocol. It will now be possible for users taking part in the ecosystem to connect with Pyth Governance via blocking their PYTH tokens within the Pyth staking program. Users will have the option to cast their votes on community governance suggestions.
On-chain governance comes with crucial protocol issues such as the reward system for the suppliers of data, the size and price of the oracle’s fees, and the option of price feeds registered on the network.
Pyth Network contributors hope to move international financial data on blockchain. To do this, the network asks top financial institutions and decentralized enterprises to provide their data for their protocol. The Pyth Oracle is responsible for collecting the data to safely and reliably publish the prices on-chain for the benefit of decentralized application creators.
The permissioned mainnet was delivered by Pyth Network in August 2021. They were short of funds and made growth their goal, along with the maximization of the protocol. After two years, the network had over 40 blockchains, solved over 230 dApps, and obtained data from 90 data sources. Currently, Pyth Network has shifted to its permissionless mainnet stage.
On-chain governance will act as the support system for the protocol’s change and offer token owners the option of suggesting, discussing, and voting on issues related to the protocol issues. On-chain governance will bring about collective decisions taken in the Pyth Network ecosystem. This will assemble an entire array of participants, like decentralized applications, financial institutions, as well as framework suppliers and DeFi users.
Pyth Network’s governance method allows Pyth token holders to take part. Token holders are required to stake their tokens in the Pyth staking program to be able to vote on community governance suggestions. Governance utilizes a 1:1 coin voting method in which every staked token makes a single vote. A few of the participants possess locked tokens that are unleashed as per an unlock schedule.
Pyth Governance functions on a weekly basis. Tokens currently staked at the commencement of the subsequent period are granted voting access. Unstaked tokens must cool down for one week before they can be withdrawn. The epoch system ensures equitable allocation of voting weights throughout the entire epoch. Certain recommendations operate for an entire week and employ the voting weights applicable to that time period.
Pyth Governance operates on the Solana mainnet-beta blockchain, but is relevant for the Pyth Network throughout multiple chains. The governance mechanism utilizes Wormhole messaging in terms of communicating with Pyth contracts on different blockchains. Suggestions receive consent in the case of most voters agreeing with them.
Those ecosystem participants who stake tokens to participate in Pyth governance are eligible to become members of Pyth DAO LLC, provided they have met the requirements for membership.
Pyth DAO is setting up an algorithmically controlled non-profit limited liability organization. Pyth DAO will soon be integrated within the Republic of the Marshall Islands.