Bittime -The crypto world was shocked by the airdrop of PYTH tokens from Pyth Network, a blockchain oracle company that is said to be a new competitor to Chainlink as the main data source for blockchain finance. Interestingly, this PYTH airdrop by Pyth Network is not only about providing free tokens to the public, but also expanding adoption and strengthening the foundation of decentralized governance in the crypto world.
Let's find out more about what Pyth Network (PYTH) is, how it works, what its uses are, and its tokenomics in the following review.
What is Pyth Network (PYTH)?
Pyth Network (PYTH) is a next-generation oracle blockchain designed to serve accurate, real-time financial market data directly from the source to multiple Layer-1 (L1) blockchains.
(Source: https://pyth.network /)
Pyth market data is contributed by more than 90 first-party publishers including exchange platforms, market maker companies, and the world's largest trading companies.
In general, Pyth exists to fulfill an important need in the DeFi world, namely the availability of reliable and real-time financial market data to a wider audience, beyond the reach of traditional financial institutions.
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Who are the Developers Behind Pyth Network?
Pyth Network was created by the Pyth Data Association team, whose director is Mike Cahill.
Mike Cahill began his career in 2006 in FX sales at Morgan Stanley. He also has 13 years of experience in the traditional financial services industry including working for Nomura Securities and Cboe Global Markets (CBOE). Now he has worked at Jump Crypto since joining in 2019. Apart from that, he has also worked as director of the Pyth Data Association since 2021.
Dave Olsen, president and CIO of Jump Trading, was the first to announce the start of Pyth Network on April 7, 2021, and Kanav Kariya, now president of Jump Crypto, has mentioned Pyth Network in the media and on Twitter.
Therefore, it can be guessed that Jump Crypto supports the project led by the director of Jump Crypto.
Other Pyth Network contributors on Jump Crypto include Saeed Badreg, Jayant Krishnamurthy, Stephen Kaminsky, Ray Song, etc. Additionally, information on Pyth Data Association team members who are not part of the Jump Group can be found on the official Pyth Data Association page.
(Source: https://pyth.network /)
How Pyth Network Works
Pyth is a protocol that allows market participants to present price information on -chain for users to use . To do this, there are three parties involved, namely data publishers, data consumers and delegators.
(Source: Pyth Network Medium )
- Data publishers are market players who have access to accurate and real-time price information. They will publish price data and get a share of the data costs.
- Data consumers are users using this price data in a smart contract or decentralized application (dApp) and can optionally pay a data fee.
- Delegators are stakeholders who stake tokens on certain products and publishers to earn a share of data fees.
On the official page, below are the detailed mechanisms for how the Pyth Network works.
- The data provider sends price information to the Pyth oracle system. Pyth itself has several data providers to display each price data to ensure the accuracy of the system.
- Then Pyth's on-chain oracle system in Pythnet combines provider-submitted data to produce a single aggregate price and confidence interval.
- The application reads price information generated by the oracle system. More specifically, Pyth allows users to “pull” prices onto the blockchain when needed. The price data is publicly available to everyone.
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What Makes PYTH Unique?
In general, critical financial information, such as prices and community and currency exchange rates, is only accessible to institutional entities such as banks and hedge funds.
However, Pyth Network brings new innovation by making such data available to a wide audience, including individual users, developers, and decentralized finance applications. By doing this, Pyth Network fosters an environment of inclusivity and transparency in accessing financial data.
(Source: https://pyth.network/ )
Interestingly, Pyth Network takes a special approach to data aggregation and distribution. Unlike many other oracle networks that focus on collecting data from various online sources, Pyth actually takes its data directly from leading financial market players such as trading companies, market makers, and exchanges to ensure the accuracy and up-to-dateness of the data.
Pyth then provides incentives to key market players in return. Data providers are rewarded based on the quality and timeliness of the data they provide, aligning their interests with the network's goal of providing high-quality data.
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What are the Uses of PYTH Token?
PYTH is the native token on the Pyth Network. The PYTH token has a number of utilities on the network that include:
- Governance: PYTH token holders have governance rights, which allow them to participate in the decision-making processes that shape the future of the network.
- Data Provider Incentives: Tokens are used to incentivize data providers, also known as publishers, on the network. This incentive mechanism ensures that the network maintains high standards of reliability and data integrity.
- Staking and Delegation: PYTH tokens can be staked by token holders, including data providers and other participants.
- Data Consumption Fees: Some applications and services in the Pyth Network ecosystem may require payment in PYTH tokens to access premium price data or other special services.
- Liquidity and Trading: PYTH tokens can be traded on various crypto exchanges, providing liquidity and price discovery for the token.
- Ecosystem Development: A portion of the PYTH token supply is allocated to ecosystem growth initiatives, such as grants, funding for research and development, and community building activities.
- Reward Distribution: The network has mechanisms to distribute rewards to various stakeholders, including data providers, token holders, and delegators.
Tokenomics
PYTH, native token, Pyth Network plays an important role in the network. This token is used for staking by issuers and delegators by implementing a reward system .
(Source: Pyth Network Whitepaper )
Below are the tokenomic details of Pyth Network (PYTH):
- Total token supply: 10 billion PYTH
- Circulating supply: 1.5 billion PYTH (15% of total token supply)
- Vesting: 85% of tokens are initially locked for certain periods such as 6, 8, 30, and 42 months after launch.
Following are the details of the token allocation:
- Publisher Rewards (22%): 2.2 billion PYTH to data provider or publisher. Pyth incentivizes them to publish accurate and timely price data.
- Ecosystem Growth (52%): 5.2 billion PYTH provided to contributors such as developers, educators, and researchers, aiming to drive expanded adoption and awareness of the network.
- Protocol Development (10%): 1 billion YTH awarded to core contributors for development of oracle infrastructure and tools.
- Community (6%): 600 million PYTH set aside for initial launch activities.
- Limited sales (10%): 1 billion PYTH allocated to strategic contributors from historical funding.
Conclusion
Pyth Network is a network that is poised to revolutionize the way financial market data is accessed and used in the DeFi space. Its innovative approach to data aggregation, combined with a strong tokenomics model and commitment to decentralization, positions it as a key player in the future of blockchain technology and finance.
As the network grows and develops, it offers exciting possibilities for developers, traders, and DeFi ecosystem enthusiasts.
How to Buy Pyth Network (PYTH) on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Pyth Network (PYTH) is available on Bittime in PYTH IDR pairing. To be able to buy PYTH IDR on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000.
After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy PYTH on Bittime .
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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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