Pyth
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Introduction
Consume Data
Publish Data
How Pyth Works
Design Overview
Solana Account Structure
Product Metadata
Price Aggregation
EMA Price Aggregation
Accounts
Network Participants
Network Interactions
Claims Process
Participant Incentives
Pyth Metrics
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Participant Incentives
For more information, visit the Pyth whitepaper https://pyth.network/whitepaper
This section summarizes the benefits for the various Pyth network stakeholders:
Publishers are incentivized to stake PYTH tokens to participate in the protocol and earn a share of the rewards. Publishers earn a share of the data fees for the products they price. The data fees for a product will likely grow in proportion to consumer usage of the price feed. Publishing erroneous data (voluntarily or not) to the network may lead to the publisher's stake being slashed.
Consumers are incentivized to pay data fees for two reasons. First, data fees enable applications to reduce the risk of using Pyth price feeds as they would receive a payout in case of failure. Second, paying data fees attracts more publishers to the product, which improves the robustness of the price feed.
Delegators are incentivized to participate in the protocol to earn data fees (coming from consumers’ data fees). Delegators will initially earn attractive payments, but competition between them will reduce the payments over time as the market becomes more efficient.
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