End OSMO Inflationary Emissions
Osmosis proposal #1053: This proposal ends OSMO inflationary emissions. The mint module stops issuing new OSMO: staking rewards from issuance and the communi...
Yes
84%
No
0%
Abstain
16%
Veto
0%
What executes if this passes
Read directly from the proposal's execution messages, separately from its description.
2 of 2 message types recognized
Execute legacy proposal content
Message · messages[0]/cosmos.gov.v1.MsgExecLegacyContent- Authority
- osmo10d07y265gmmuvt4z0w9aw880jnsr700jjeq4qp
messages[0].authority
Source JSON · messages[0]
Change parameters
Message · messages[0].content/cosmos.params.v1beta1.ParameterChangeProposal- Proposed change
- mint / MintingRewardsDistributionStartEpoch
"100000000"
messages[0].content.changes[0] - Proposed change
- mint / PoolAllocationRatio
{"staking":"0.000000000000000000","pool_incentives":"0.000000000000000000","developer_rewards":"0.000000000000000000","community_pool":"1.000000000000000000"}
messages[0].content.changes[1]
These are proposed values. Current on-chain values have not been queried for comparison.
Source JSON · messages[0].content
This is a preview of requested operations, not proof of execution or a safety assessment. Chain rules and runtime checks still apply.
All execution JSON
AI Summary
gpt-5.4-mini - generated 10/20/2026, 8:39:36 PM
End OSMO Inflationary Emissions
Proposal 1053 would end OSMO inflationary emissions by stopping the mint module from issuing new OSMO. Staking rewards from issuance and community pool allocations would cease, and staking rewards would come only from protocol revenue. The daily developer vesting release would also pause. The proposal says OSMO is already net deflationary and this change removes the remaining soft-burn issuance.
- Stop all new OSMO minting by setting the mint start epoch far in the future.
- Set distribution proportions so inflation calculations show zero staking APR.
- End the daily developer vesting release tied to the same mint mechanism.
- Staking rewards would come entirely from protocol revenue such as fees.
- The community pool would no longer receive newly minted OSMO.
Voter Impact
If passed, issuance stops from the first daily epoch after passage. Stakers lose the current inflationary APR but still earn fee-based rewards. The community pool stops growing from emissions, and the developer vesting release pauses until a separate governance action.
Risk Signals
- The stored epoch provisions would still display about 121,766 OSMO per day, which could be confusing because nothing would actually mint.
- The proposal assumes fee revenue will adequately replace issuance-based staking rewards, but future revenue is uncertain.
- Pausing the developer vesting release leaves a large remaining balance in the vesting module with any future release requiring another vote.
Original Proposal Text
This proposal ends OSMO inflationary emissions. The mint module stops issuing new OSMO: staking rewards from issuance and the community pool allocation end, and staking rewards come entirely from protocol revenue. The daily developer vesting release, which runs through the same mechanism, pauses with it. ## Background OSMO issuance has been cut in stages through [Proposal 957](https://daodao.zone/dao/osmosis/proposals/957) and [Proposal 967](https://daodao.zone/dao/osmosis/proposals/967), reducing the staking subsidy in two steps to below the taker fee burn rate. Most of each day's issuance is now redirected to the community pool as a soft burn. OSMO is already deflationary: the OSMO burned from taker fees and ProtoRev revenue over the last year outpaces the OSMO issued into circulating supply. Today the mint module still distributes about 121,766 OSMO per day, but most of it never enters circulating supply: | Allocation | Share | OSMO per day | Goes to | | -- | -- | -- | -- | | Staking rewards | 8% | ~9,740 | Circulating supply | | Developer vesting release | 25% | ~30,440 | Circulating supply (developer address) | | Community pool | 67% | ~81,580 | Community pool, not circulating | Only the staking rewards and the developer vesting release, about 40,000 OSMO per day, enter circulating supply. The staking share adds about 2 percentage points to staking APR. The developer vesting release unlocks pre-minted OSMO to the developer address set by [Proposal 997](https://daodao.zone/dao/osmosis/proposals/997), where it has remained untouched since December 2025. The community pool share does not circulate; it accumulates a balance that governance must manage. ## Rationale * **Full revenue reliance.** Staking rewards are already largely funded by protocol revenue: taker fees and transaction fees. Ending emissions completes the move to a staking yield made entirely of revenue. * **Every burn reduces supply.** With no new issuance, all OSMO burned from taker fees and ProtoRev revenue directly reduces supply. * **No more soft burn.** Redirecting issuance to the community pool keeps OSMO out of circulation but still creates it. Ending issuance at the source removes the need for it. ## Proposed Change * Set the mint parameter `minting_rewards_distribution_start_epoch` to 100,000,000. The mint module does not mint before this epoch, and in practice it is never reached at the rate of one epoch per day. * Set the mint `distribution_proportions` to 100% community pool (staking, pool incentives and developer rewards to 0), so the chain's inflation query and staking APR calculations report zero. The `epoch_provisions` value stored by the mint module is left unchanged. Queries of it will continue to show about 121,766 OSMO per day, but nothing is minted. ## Impact * **No OSMO is minted or released from the first daily epoch after passage.** * **Stakers** continue to receive their share of taker fees and transaction fees. The roughly 2% APR from issuance ends. This is mostly replaced by the 1.7% additional estimated APR from the increased share of taker fees in [Proposal 1052](https://daodao.zone/dao/osmosis/proposals/1052). * **Developer vesting:** the daily release pauses. The remaining balance, about 51.9 million OSMO, was minted at genesis rather than issued, and stays in the developer vesting module account. Any future release would require a separate governance decision. * **Community pool:** no longer receives newly minted OSMO. **Forum Post:** [https://forum.osmosis.zone/t/end-osmo-inflationary-emissions/4159](https://forum.osmosis.zone/t/end-osmo-inflationary-emissions/4159) More details: Not Used