Pyth Network Introduces Staking Program to Enhance Data Reliability

• Oracle Integrity Staking introduces accountability and rewards for Pyth network participants.
• Pyth DAO governs staking, slashing, and reward parameters, ensuring system adaptability.
• PYTH token holders can stake, earn rewards, or face penalties based on data quality.

The Pyth Network has rolled out Oracle Integrity Staking (OIS). This upgrade aims to improve data source accountability by introducing staking rewards and slashing mechanisms for participants. With OIS, Pyth wants to make sure its real-time price feeds stay top-notch across the DeFi ecosystem.

Additionally, Oracle Integrity Staking will bring a decentralized staking mechanism to the Pyth network. This new feature lets PYTH token holders and data publishers stake tokens and receive rewards tied to the quality of data provided.

Beyond these rewards, the system includes slashing mechanisms, penalizing those who contribute faulty data. This holds publishers and stakers accountable, fostering reliability within the Pyth ecosystem.

The Pyth DAO plays a key part in overseeing important updates to the Oracle Integrity Staking system. The DAO can vote on changes to staking and slashing parameters, making sure the system stays adaptable and effective.

Moreover, The DAO has the power to decide how slashed funds will be used and to vote on adding new reward sources, such as on-chain revenue from the Pyth oracle.

How Oracle Integrity Staking Works

According to the announcement, participants in the OIS program can delegate their PYTH tokens to publishers, increasing their potential rewards for providing high-quality data. If a publisher’s data doesn’t meet the network’s standards, the stakers who supported them could face penalties. This shared responsibility model encourages careful evaluation of publishers before staking, creating a culture of accountability across the network.

Pyth has made it easy to participate in the OIS program with a simple four-step process. Basically, participants stake their tokens and help secure the Pyth price oracle. The steps involve adding tokens, selecting publishers, allowing a short token warmup period, and earning rewards based on the performance of the chosen publishers.