Pyth Network Proposes Closing Pythnet in 2026 and Moving to Lazer

Pyth Network says OP-PIP-100 and OP-PIP-103 would end OIS staking rewards, retain slashing, and advance a revenue-driven model as Pythnet is gradually shut down in 2026.

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Summary

Pyth Network announced a strategic shift toward revenue-driven economics alongside plans to gradually shut down Pythnet in 2026 and move activity to Lazer. Under OP-PIP-100 and OP-PIP-103, OIS staking rewards would end while slashing would remain in place, changing the network’s incentive structure without removing penalty mechanisms. The PYTH Reserve has also repurchased about 12 million PYTH using protocol revenue, underscoring the protocol’s use of operating income as part of the transition.

Terms & Concepts
  • staking: Locking crypto tokens to support a network or related system, often in exchange for rewards.
  • slashing: A penalty mechanism that reduces staked tokens when network participants violate rules or fail required conditions.
  • protocol revenue: Income generated by a blockchain-based protocol from its services, which can be used for operations, incentives, or token repurchases.