Osmosis says daily new OSMO issuance fell from 91,324 to zero. Staking rewards continue from fees, while 51.9 million developer tokens remain locked.
Osmosis says it stopped creating new OSMO on October 26. According to the decentralized exchange network’s official announcement, the October 26 daily distribution period ended without minting any tokens, down from 91,324 a day. People staking OSMO still earn rewards. The network now pays them entirely from fees.
Proposal 1053 passed; issuance stopped on October 26
Voting on governance proposal 1053 ended with approval on October 25. Mintscan shows 91.07% of voting weight in favor and 8.93% abstaining, with very small no and veto votes. Osmosis rounded support to 91.1% in its announcement the following day. The percentage measures participating token voting weight, not the number of individual voters.
From the first daily period after approval, the mint module stopped creating OSMO and releasing previously minted developer tokens. The proposal describes a previous daily distribution of about 121,766 OSMO. A quarter of that total, however, was the unlocking of developer tokens created when the network began. The 91,324 figure counts only newly created tokens.
| Allocation | Share | Daily OSMO | Previous use |
|---|---|---|---|
| Staking rewards | 8% | About 9,740 | Newly issued rewards entering circulation. |
| Developer tokens | 25% | About 30,440 | Previously minted tokens released to the developer address. |
| Community pool | 67% | About 81,580 | New issuance accumulating in the pool outside circulation. |
The proposal’s authors calculated that staking rewards and developer releases added roughly 40,000 OSMO a day to circulating supply. They said tokens sent to the developer address had remained untouched since December 2025. The transferred amount does not measure market sales.
Osmosis’s October 26 announcement that daily new issuance had fallen to zero.
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A larger share of trading fees goes to stakers
People delegate OSMO to validators that secure the network and receive a share of trading and network transaction fees. The previously approved proposal 1052 changed the distribution of taker fees collected in assets other than OSMO. Stakers now receive the 25% previously sent to the community pool. Their share rose from 22.5% to 47.5%; the burn share remains 52.5%.
The protocol buys OSMO with the non-OSMO fees assigned to staking and burning. It then distributes or burns the purchased tokens according to those shares. For taker fees paid directly in OSMO, the existing split remains: 30% goes to stakers and 70% is burned. The 47.5% staking share applies only to taker fees collected in tokens other than OSMO.
The authors of proposal 1052 estimated an extra 8,300 OSMO a day using the preceding 30 days’ trading volumes and the OSMO price at the time. The proposal passed on October 14. Their estimate would add about 1.7 percentage points to the annual percentage rate, or APR. Ending issuance removed roughly two percentage points of APR, according to proposal 1053. Its authors expected the increased fee share to replace most of that subsidy. These estimates do not measure October 27 rewards or total APR.
Actual rewards depend on fee revenue, trading volumes and how much OSMO those fees can buy. Osmosis’s staking documentation says validators deduct their commission from rewards. In the forum discussion opened on October 14, participant Anzus_GemWallet asked for clear yield displays, warning that users might otherwise interpret a changed figure as a problem with their rewards.
The remaining 51.9 million developer tokens were not burned
About 51.9 million OSMO remain in the vesting module, which holds tokens for gradual release to developers. They were created when the network launched. Daily releases stopped, but the balance was not burned. Any future release requires a separate governance decision. Tokens already sent to the developer address are distinct from the balance still held in the module.
Minting tokens into the community pool was what the proposal called a soft burn: the tokens stayed outside circulation but continued to exist in total supply. The network no longer creates new OSMO for the pool. Burning OSMO bought with fees reduces total supply. According to the proposal’s authors, taker-fee and ProtoRev burns over the previous year had already exceeded additions to circulating supply.
“Every burn reduces supply.”
Proposal 1052 removed the community pool’s taker-fee share, while proposal 1053 stopped new OSMO issuance. The pool continues to receive revenue from ProtoRev, the auction for transactions at the top of a block, and smaller charges such as pool creation and incentive fees. Ending issuance also does not automatically distribute the pool’s accumulated assets to stakers.
Why can a mint query still show 121,766 OSMO?
The earliest period at which minting can begin was moved to 100 million. At one period per day, the proposal’s authors say the network will not reach that threshold in practice. The distribution settings now assign 100% to the community pool and zero to other recipients. This makes issuance-based inflation and staking APR calculations show zero; fee-funded rewards continue. With minting disabled, no new tokens reach the pool.
The stored epoch_provisions value is unchanged, so queries can still return about 121,766 OSMO. That number is the old distribution value retained in the module. Osmosis reported no newly minted tokens in the first daily period completed on October 26.
No price guarantee: Fee income can change, and staking rewards carry risks separate from OSMO’s market price. Burning tokens reduces supply but does not by itself create demand or a price increase. A tokenomics assessment still needs to track existing balances, unlocks, sales and future governance decisions.
