深潮TechFlow|Oct 15, 2026 04:26
**[Osmosis Governance Forum Proposes Ending OSMO Inflationary Issuance]**
Deep Tide TechFlow reports that on October 15, according to forum disclosures, Osmosis community member JohnnyWyles has introduced a governance proposal to completely terminate the inflationary issuance of the OSMO token.
As outlined in the proposal, the chain's minting module will cease issuing new OSMO tokens, and inflationary subsidies for staking rewards as well as allocations to the community pool will be halted. Staking rewards will rely entirely on protocol revenues such as taker fees and transaction fees. Additionally, the daily developer token vesting release will also be suspended, with approximately 51.9 million OSMO remaining in the module account. Future releases of these tokens will require approval through an independent governance process.
The proposal notes that OSMO has already entered a deflationary state following multiple adjustments, with the amount of tokens burned through fees over the past year exceeding the newly added circulating supply. This proposal aims to adjust the minting parameters to a distant epoch, effectively terminating inflationary issuance at its source and eliminating the "soft burn" mechanism.
If the proposal is approved, the approximately 2% annual percentage rate (APR) of staking rewards derived from inflationary issuance will cease, and staking rewards will primarily be replaced by revenue from the newly introduced taker fee sharing mechanism. The on-chain voting for this proposal is expected to take place on October 20, 2026.
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