Crypto project starts token to offer data suppliers an incentive

pyth-a crypto project that was built up by some of the world's largest high-speed dealers-should add a governance token to its network in order to provide users to provide high-quality data for their feed with trading prices.

The digital token called Pyth could bring in fees from the information they provide to the Pyth project. Pyth acts as a price feed of data from stock, conventional currency, crypto and raw material markets.

The data is published anonymously on a blockchain in less than a second and can be used for other crypto projects. Details were presented in a white paper published by the Pyth network on Tuesday.

pyth has traditional competitors such as Jump Trading, DRW Cumberland, Jane Street, GTS, Hudson River Trading and Two Sigma-some of the largest dealers on the financial markets-convinced that they can join crypto-native dealers such as FTX, DV Chain and Genesis in providing data for the price feed.

The project has been running since August, and more than 40 stock exchanges and trade institutions are now participating.

But despite his list of respected names, Pyth was occasionally haunted by mistakes. An incident last September led to the feed wrongly posted that Bitcoin's price had fallen 90 percent.

The supporters of Pyth want to change the economy and distribution of market data, which in their opinion are concentrated in favor of some less central parties such as stock exchanges. Cryptotot technology offers a possible alternative, because a blockchain guarantees the origin of a wealth value and its owner.

The white paper said that payments from users who take the data feed are an incentive for companies that publish their data in the network.

When publishers spread inaccurate data, the network can take some of its Pyth token away, according to the white paper. It was also proposed that a fifth of the data fees per product flow into a reward pool.

pyth's long -term plan is to become a fully decentralized organization, the rules of which are automated or developed in consensus between their members.

"At the moment Pyth is based on trust. Over time, we really want to cod. [The paper] shows how to reward precise data and punish inaccurate data," said Mike Cahill, a board member of the Pyth Data Association that wrote the paper.

"The vision for Pyth is to be the highest quality data oracle network."

10 billion Pyth government tokens will be in circulation, and the white paper said that the overall offer would not increase. In addition, 85 percent of the tokens are blocked at the beginning and cannot be traded. They are continuously unlocked every month to increase the offer on the market over time.

Until then, the Pyth Data Association expects complete control over the protocol to token owners.

User with a minimum of Pyth token that has not yet been defined that have been used in the network can make governance suggestions and vote on developments for the network. Early participants in Pyth can receive further tokens.