Osmosis, the Cosmos-based decentralised exchange, has stopped issuing new OSMO. Stakers passed Proposal 1053, “End OSMO Inflationary Emissions”, when voting closed at 17:36 UTC on Sunday, with about 95.1 million OSMO in favour, 9.3 million abstaining and fewer than 3,500 against or vetoing.
Update, 27 Oct 10:40 CET: Proposal 1054 passed when voting closed at 09:02 UTC. The final yes tally was about 97.4 million OSMO.
The change targets the chain’s mint module, the so-called inflation engine: the code that created new OSMO every day and split it between stakers, a developer allocation and the community pool, the treasury that governance controls. The chain’s mint parameters now send nothing to stakers or developers.
Before the vote, the module created about 121,766 OSMO a day, the proposal says. About 9,740 went to stakers and 30,440 to the developer vesting address; the other 81,580 went into the community pool and never circulated. So only about 40,000 OSMO a day reached circulating supply.
Stakers now earn only their share of taker fees, the charge on each swap, and transaction fees. Issuance had added about 2 percentage points to staking yield, the proposal says. The daily developer release pauses too, which leaves about 51.9 million already-minted developer tokens locked, The Defiant reported.
The proposal argues OSMO was already shrinking, because tokens burned from fees outpaced new tokens reaching the market. Earlier proposals, 957 and 967, had cut the staking subsidy in two steps before this one ended it.
Why it matters: with no issuance, every OSMO burned is a net cut in supply. The cost is borne by stakers, whose yield now depends on how much the exchange trades.
Two more votes this week
The second vote, Proposal 1054, which approves the v32 software upgrade, passed when voting closed at 09:02 UTC today. The final tally was about 97.4 million OSMO yes against a few thousand no or veto, according to the chain.
The upgrade is set for block 73,304,000, estimated at about 15:00 UTC (16:00 CET) today. It moves 22.65 allBTC, a wrapped bitcoin, that has been frozen on an exploiter’s account to the chain’s Liquidity SubDAO, as approved earlier in Proposal 1044.
It also frees balances stuck in ProtoRev, the chain’s built-in arbitrage module: about 84 tokens worth roughly $50,000, mostly TIA, AKT and ETH, the proposal says. Those are to be sold for OSMO and burned.
Proposal 1055, which closes at 10:20 UTC on Wednesday, would swap community pool reserves into BTC, ETH and USDC. That includes about 29,850 ATOM into BTC, wstETH into ETH, and several bridged dollar tokens into Noble USDC. About 78.6 million OSMO had voted yes by 05:00 UTC.
Cosmos chains are rewriting their own economics
Osmosis is choosing to stay on its own chain and make it pay for itself. Stakers keep securing the network, but are now paid only from the exchange’s revenue.
Akash, another long-running Cosmos chain, is going the other way. Its stakers are voting on leaving their own chain for Solana, which would end its staking rewards at cutover.
Both votes ask the same question: whether a chain’s own token can keep paying for security without printing more of it. Starknet’s stakers, covered in last week’s chain check, backed research tied to a third path: running its own layer 1.
OSMO was trading at $0.0549, up 9.7% over 24 hours, as of 04:53 UTC on 27 Oct, according to CoinGecko. The v32 upgrade is due at about 15:00 UTC today.
This article is for information only and is not investment advice.