Migration of Parameters and Usage from Noble USDC to Alloyed USDC
Osmosis proposal #1039: This proposal: * Replaces USDC via Noble in every protocol parameter that names a USDC denom with Alloyed USDC. * Confirms the usage...
Yes
85%
No
0%
Abstain
15%
Veto
0%
AI Summary
gpt-5.4-mini - generated 8/25/2026, 11:18:15 AM
Migration of Parameters and Usage from Noble USDC to Alloyed USDC
This proposal updates Osmosis parameters and fee settings from USDC.noble to Alloyed USDC (allUSDC), and confirms allUSDC as the canonical USDC version on Osmosis. It does not create new policy; it applies the existing alloyed-asset standard to a specific USDC case. The alloy currently includes USDC.noble, USDC.eth.axl, and USDC.inj, with governance and a moderator subDAO managing future changes.
- Replace USDC.noble with allUSDC in several protocol parameters.
- Confirm allUSDC as the canonical USDC representation on Osmosis.
- Update pool creation fee and block-sdk fee settings to use allUSDC.
- Keep community pool routing aligned with allUSDC.
- Allow the alloy composition to evolve as usage shifts.
Voter Impact
Yes vote supports a gradual migration away from a single USDC issuer to a multi-source alloyed asset for fees, bids, and whitelists. This may reduce reliance on Noble USDC and standardize Osmosis around allUSDC. Voters should confirm they are comfortable with governance and a subDAO managing future constituent changes.
Risk Signals
- The alloy composition can change over time, so the exact underlying mix is not fixed.
- Removal and addition of constituents depends on governance and the moderator subDAO.
- The proposal is mostly a parameter migration; operational effects may be broad but are not fully detailed.
- No rate limiters are currently set on the alloy, which may matter for usage dynamics.
Original Proposal Text
This proposal: * Replaces USDC via Noble in every protocol parameter that names a USDC denom with Alloyed USDC. * Confirms the usage of [USDC Alloyed Asset](https://celatone.osmosis.zone/osmosis-1/contracts/osmo147h5x9pcj7lm0cttlaefx6sqq5vdfnmwfcqxkmjd7exqm9gc7grqhr75m0) as the canonical version of USDC on Osmosis. ## Background USDC.inj is now registered across the Cosmos ecosystem and live on Osmosis. This proposal moves Osmosis from basing parameters on USDC.noble to targeting an alloy of the three primary USDC options in use: USDC.noble, USDC.inj and USDC.eth.axl, to encourage migration to a single quote asset. This alloy's composition will change over time as usage of included variants shifts, with removals managed by the Alloyed Asset moderator subDAO and additions managed by Osmosis governance, so the primary quote denomination is not dependent on any single issuance route. ## Parameters changed |Parameter|From|To|Modified In|Purpose| |-|-|-|-|-| |poolmanager `pool_creation_fee` |20 USDC.noble |20 allUSDC|[Proposal 767](https://www.mintscan.io/osmosis/proposals/767)|Cost to create a new pool, paid to the community pool| |block-sdk `reserve_fee`|0.1 USDC.noble|0.1 allUSDC|[Proposal 958](https://www.mintscan.io/osmosis/proposals/958)|Minimum Top of Block bid| |block-sdk `min_bid_increment`|0.1 USDC.noble|0.1 allUSDC|[Proposal 958](https://www.mintscan.io/osmosis/proposals/958)|Minimum Top of Block bid increment| | block-sdk `escrow_account_address`|[Community Pool Forwarder - USDC](https://celatone.osmosis.zone/osmosis-1/contracts/osmo1jayxmrajq8nzw2knatgsjdkdhnkw8flkgqs84pvphs3ut2hts5xq9hacch)|[Community Pool Forwarder - allUSDC](https://celatone.osmosis.zone/osmosis-1/contracts/osmo10c79mm4taurpdmvxvw9nyqq4mskvk9h5jn38yjpye2azeun9rg2s8j5jhr)|[Proposal 958](https://www.mintscan.io/osmosis/proposals/958)|Receives Top of Block bid proceeds and forwards them to the community pool| |`taker_fee_params.community_pool_denom_whitelist`|includes USDC.noble|USDC.noble replaced by allUSDC|[Proposal 1026](https://www.mintscan.io/osmosis/proposals/1026)|Accumulates allUSDC in the community pool instead of USDC.noble| ## Canonical status The alloy is formed to the generic standard approved in [Proposal 826](https://www.mintscan.io/osmosis/proposals/826), "Alloyed Assets: Generic specification approval", which recognizes alloyed assets as the canonical representation of their underlying asset on Osmosis. This proposal asks governance to confirm the specific case rather than to establish new policy. ### Alloy Configuration Contract: `osmo147h5x9pcj7lm0cttlaefx6sqq5vdfnmwfcqxkmjd7exqm9gc7grqhr75m0` Pool: 3497 Code ID: 996 (transmuter v3.2) Denom: `factory/osmo147h5x9pcj7lm0cttlaefx6sqq5vdfnmwfcqxkmjd7exqm9gc7grqhr75m0/alloyed/allUSDC` Transmuter Admin: Osmosis governance module account Moderator: Alloyed Asset moderator subDAO Constituents: USDC.noble, USDC.eth.axl, USDC.inj Alloy Normalization factor: `1` No rate limiters are currently set on this alloy. **Forum Post:** [https://forum.osmosis.zone/t/migration-of-parameters-and-usage-from-noble-usdc-to-alloyed-usdc/4112](https://forum.osmosis.zone/t/migration-of-parameters-and-usage-from-noble-usdc-to-alloyed-usdc/4112) More details: Not Used