The OSMO community is discussing taking 55.5 million $OSMO out of the community pool and transferring them to a burn address, bringing the cumulative amount burned to more than 100 million. The 100 million here is a cumulative target; the amount proposed for this round is 55.5 million.

These coins were originally not in circulation, but they could still be allocated through future governance proposals. I support permanently removing part of them, so holders will be less affected by one potential future release. Any benefit to the token price comes from reducing the number of coins that could be released in the future; it does not involve buying back OSMO from the market, nor would it remove 55.5 million coins from the current circulating supply on the day it is executed.

The proposal author says the target is to submit it on-chain on October 30, but what we see now is still a forum proposal and cannot be treated as already burned. If implemented as proposed, the community pool would still retain about 63.8 million OSMO and other assets; in the future, when funds need to be spent, the amount of OSMO reserves the community can draw on would also be reduced.