The Osmosis community has passed a proposal to halt OSMO inflationary issuance and transition to protocol revenue distribution.

October 27 - According to the Osmosis governance page, proposal number 1053, "Terminate OSMO Inflation Issuance," was voted through on October 26 with a support rate of 91.07% and a voter turnout of 65.38%.

Following the proposal's approval, Osmosis will cease issuing OSMO through additional minting, staking rewards and the community pool will no longer receive newly minted tokens, and staking yields will rely entirely on protocol revenue, including transaction fees. Meanwhile, the daily unlock release of approximately 30,440 OSMO for developers will also be paused, with about 51.9 million OSMO remaining in the developer vesting module account; any future release will require a separate governance decision.

The proposal notes that halting additional minting will eliminate dilution from new supply and allow the burns generated by transaction fees and ProtoRev revenue to directly reduce the token supply. Although the roughly 2 percentage points of staking APR contributed by additional minting will disappear, the proposal estimates that part of the yield loss is expected to be offset by the approximately 1.7 percentage points of additional APR from Proposal 1052's increase in the transaction fee allocation ratio.