---
title: PYTH Token
description: The governance token of the Pyth Network
---

The Pyth Network, as a distributed system, needs to have a constitution and a clear governance system.

PYTH is the governance token of the Pyth Network, and the [Pyth DAO constitution](https://github.com/pyth-network/governance/blob/main/docs/constitution/pyth-dao-constitution.md) is the governance framework for the Pyth DAO. The constitution outlines the rules and procedures of the Pyth DAO. These rules and procedures are generally enforced through on-chain contracts and the associated parameters, unless specified by the Pyth DAO for actuation off-chain.

## PYTH Token Staking

PYTH Token can be staked for Governance and Oracle Integrity.

### 1. Staking PYTH for Governance

PYTH token holders can participate in Pyth governance through [staking](https://staking.pyth.network/) and [governance](https://app.realms.today/dao/PYTH). Token holders use their staked tokens in the Pyth staking program to vote on community governance proposals.

Governance uses a 1:1 coin-voting system, where each staked token confers one vote.

Any PYTH Token holder can submit proposals to the Pyth DAO as long as they have **0.25%** of the total PYTH tokens staked.
At the end of the **7 day** voting period, a proposal is passes if it meets the following conditions:

- **More yesses** have been cast than nos.
- The "**Approval Quorum**" has been met. \
  **Approval Quorum** is a percentage of staked PYTH tokens that must have voted yes for the proposal to pass. "Community Vote Threshold Percentage" is expressed as percentage of staked tokens at the start of the voting period for the proposal. This percentage threshold can vary depending on the type of proposal. The current threshold can be found in the "Governances" sections of the [parameters of the DAO](https://app.realms.today/dao/PYTH/params).

Please note that the scope of community governance proposals may be expanded if the PYTH token holders (or the Pyth DAO) decide so.

### 2. Staking PYTH for Oracle Integrity

The Pyth Network is built to provide decentralized applications with reliable and trustworthy data. The quality of the data it provides is paramount for these application's functions and the network's overall success.

Pyth's [Oracle Integrity Staking (OIS)](./oracle-integrity-staking) concentrates on producing quality data in the hands of a limited set of semi-trusted entities to achieve more coverage and lower latency than the competition. The responsibility of publishers over data quality is not just ethical but also incentivized through economics:

- **Staking and Slashing:** Publishers can self-stake PYTH tokens as collateral. It also allows other stakers to choose publishers to delegate their PYTH tokens. In the event of data inaccuracies or inconsistencies, a portion of this stake can be slashed as a penalty. This mechanism ensures that publishers have a vested interest in providing accurate data
- **Reputation:** The reputation of data publishers is directly linked to the quality of data they provide. Publishers with a track record of providing accurate data are more likely to be trusted and attract more interest.
