Pyth Network Unveils New Staking System
The Pyth Network has launched its Oracle Integrity Staking (OIS) program, designed to enhance accountability among data sources by introducing both staking rewards and penalties for participants.
This initiative aims to ensure that Pyth’s real-time price feeds maintain high standards across the decentralized finance (DeFi) landscape.
With OIS, Pyth introduces a decentralized staking framework that allows PYTH token holders and data publishers to stake their tokens and earn rewards linked to the quality of the data they provide. In addition to these rewards, the system incorporates slashing mechanisms to penalize those who submit inaccurate data, thereby promoting reliability within the Pyth ecosystem.
Oversight of the Oracle Integrity Staking system is managed by the Pyth DAO, which has the authority to vote on modifications to the staking and slashing rules, ensuring the system remains flexible and effective. The DAO also decides the allocation of slashed funds and can vote to incorporate new reward sources, such as on-chain revenue from the Pyth oracle.
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As for how OIS operates, participants can delegate their PYTH tokens to data publishers, which can enhance their rewards for delivering quality information. However, if a publisher fails to meet the network’s standards, the stakers supporting them may incur penalties. This shared accountability encourages thorough assessment of publishers before staking, fostering a culture of responsibility throughout the network.
Participating in the OIS program is straightforward, involving a four-step process. Participants simply stake their tokens to help secure the Pyth price oracle. The steps include adding tokens, selecting publishers, allowing a brief warm-up period for the tokens, and earning rewards based on the performance of the selected publishers.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
