Pyth’s Phase 2 conversation isn’t just about another engineering milestone it’s an invitation to rethink what a decentralized oracle network creates for its community. After a Phase 1 that proved product-market fit inside DeFi, the team and contributors are pushing the DAO to move from purely technical wins to measurable economic value: new revenue models, institutional customers, and explicit ways the network’s upside can flow back to users and developers.
At the heart of the proposal is a pragmatic pivot: commercialize Pyth’s institutional-grade data by offering paid subscription products and services. The idea is simple but powerful institutions already spend tens of billions on market data each year; Pyth can package its high-fidelity, first-party feeds into enterprise-grade offerings and capture a slice of that revenue, which in turn would strengthen the DAO’s financial footing and create new levers for funding ecosystem growth. That effort would run alongside the existing free-onchain feeds that DeFi apps rely on, not replace them.
But revenue alone isn’t the headline the Phase 2 draft explicitly asks the DAO to consider how value gets returned to the community. That’s the governance pivot: rather than treating income as overhead for the foundation or ops, the proposal frames revenue as a shared pool that the DAO can allocate (via grants, buybacks, token rewards, or other mechanisms) to benefit contributors, publishers, builders, and token holders. In short: build a business model whose upside accrues to the network, not an outside operator.
Practically, the roadmap for Phase 2 mixes product, market, and governance work. On the product side, expect fleshed-out subscription and service tiers, SLAs, and tooling for institutional integration. On the market side, the team is talking about targeting adjacent verticals risk analytics, settlement services, or TradFi pipelines where Pyth’s real-time provenance and broad asset coverage create an unfair advantage. On governance, the DAO will need mechanisms to decide distribution rules, thresholds for commercial deals, and safeguards to keep onchain data public and open where it matters.
That combination enterprise sales plus DAO-directed returns is what makes the community call and discussion so important. Pyth scheduled a Phase 2 presentation and AMA to walk through the subscription model, collect feedback, and surface concerns about tokenomics, centralization risk, and legal/compliance tradeoffs. The outcome of those conversations will shape whether Phase 2 is seen as a revenue-first pivot or a community-first expansion.
There are obvious trade-offs to juggle. Institutional customers want stability, contracts, and SLAs; DeFi users prize openness, decentralization, and low-latency free feeds. The DAO’s job is to architect commercial contracts and product wrappers that satisfy enterprises without creating opaque, privileged data silos that hollow out the onchain commons. That requires careful engineering (tiered APIs, paywalls that don’t break onchain reads), legal clarity, and transparent revenue governance.
If Phase 2 succeeds, the upside is more than revenues. A sustainable cashflow to the DAO can fund developer grants, bootstrap new chains of adoption, underwrite oracles in emerging markets, and finance long-term research all of which increase the fundamental value of the network and its token economy. Conversely, if the DAO mishandles allocations or creates excessive vendor lock-in, the credibility and adoption that made Pyth valuable could erode. The proposal’s emphasis on “deliver value back to the community” is an explicit recognition of that tension.
For community members builders, data publishers, and token holders Phase 2 is your chance to shape the rules of engagement. The DAO conversation will decide which customers are pursued, how commercial income is stewarded, and what protections exist for open, permissionless onchain data. The practical ask is simple: weigh in on the mechanics, insist on transparent allocation rules, and prioritize designs that grow both revenue and accessibility.
In short, Phase 2 is less a technical roadmap and more a governance test: can a decentralized community convert a world-class technical asset (real-time, first-party market data) into a sustainable business that enriches the very people who built it? The proposal is explicit about the stakes and about asking the DAO to decide not only how Pyth makes money, but how that money becomes shared value.
