Osmosis debate on ending OSMO emissions: what would change

On October 14, a proposal to end inflationary OSMO emissions was posted on the governance forum. It is still under discussion: the Osmosis node’s query on October 15 shows that the proposed parameters have not yet been applied.

The proposal aims to stop the creation of new OSMO and have staking rewards come entirely from protocol revenue, such as trading and transaction fees. The community pool would stop receiving newly issued tokens.

The daily developer unlock would also be paused. According to the author, around 51.9 million OSMO minted since the network’s launch remain: they would stay in the vesting account, and any future unlock would require another governance decision. Pausing that unlock does not mean burning those tokens.

October 20 is the target date for submitting the proposal on-chain, not a confirmed execution date. If approved, the change would take effect from the first subsequent daily period. Fee-based rewards would depend on activity; they are not equivalent to a fixed rate.

Market snapshot: between 09:40 and 09:41 UTC on October 15, Binance spot showed OSMO at 0.0422 USDT (+5.24% in 24 hours), while ATOM, a benchmark for the Cosmos ecosystem, was at 1.668 USDT (-7.08%). This divergence does not prove a single cause. Potentially lower emissions do not guarantee a higher price: demand, liquidity, and the outcome of the governance process also matter.

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Educational content. Not financial advice.

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