Osmosis Ends OSMO Inflation After 91% Governance Vote

Osmosis halted inflationary OSMO issuance after on-chain Proposal 1053 passed on Oct. 25. The first daily epoch after the vote minted no new tokens, according to the Osmosis team. OSMO rose 18.98% in 24 hours to $0.0626 on Oct. 27.

The proposal received 95.13 million votes in favor, 9.33 million abstentions, 2,340 votes against and 1,151 veto votes. Participation reached 65.52%, above the 30% quorum requirement. Voting opened on Oct. 20 and closed on Oct. 25.

Proposal 1053 set the minting module’s reward distribution start epoch to 100 million. With the network running at about one epoch per day, that level is not expected to be reached. The proposal also assigned 100% of distribution proportions to the community pool.

Before the change, the minting module allocated about 121,766 OSMO per day. About 8%, or 9,740 OSMO, went to staking rewards; 25%, or 30,440 OSMO, went to developer vesting; and 67%, or 81,580 OSMO, went to the community pool. The staking and developer allocations totaled about 40,000 OSMO per day entering circulation. The community-pool allocation remained outside the circulating supply.

The Osmosis team reported daily minting of about 91,324 OSMO before the switch. The difference between that figure and the larger allocation estimate reflects the figures used in separate network records. The previous circulating-supply additions of about 40,000 OSMO per day amounted to roughly 14.6 million OSMO annually.

Staking rewards will now rely on taker fees and transaction fees instead of newly issued tokens. Proposal 1053 stated that the roughly 2% annual percentage rate previously supplied by issuance would be largely replaced by an estimated additional rate of 1.7% from a larger share of taker fees approved under Proposal 1052.

The proposal also stated that taker-fee burns and ProtoRev revenue had exceeded issuance over the previous year. With issuance stopped, OSMO burned through those mechanisms will not be offset by newly minted tokens.

OSMO had a market capitalization of about $47 million and 749.25 million tokens in circulation on Oct. 27, according to CoinGecko. Osmosis had about $11.2 million in total value locked, while 24-hour trading volume was approximately $16.47 million. OSMO remained 99.4% below its $11.25 all-time high recorded on March 3, 2022, and 137.8% above its $0.0263 all-time low from July 29, 2026.

About 51.9 million OSMO remains in a developer vesting account. The tokens were created at genesis and are not part of the new issuance schedule. Any future release would require a separate governance vote.

Proposals 957 and 967 previously reduced OSMO emissions. Subsequent staking rewards, circulating-supply figures and any governance vote concerning the developer vesting account will provide further data on the effects of Proposal 1053.