Osmosis Proposal Would End Daily OSMO Inflation and Pause Vesting

Osmosis is weighing a proposal to end daily OSMO issuance and pause developer vesting, changes that would leave protocol revenue as the sole source of staking rewards if approved.

The proposal targets an on-chain vote for Oct. 20, 2026. It would stop the network’s mint module from creating new OSMO each day and halt daily vesting releases to developers.

The vesting module holds about 51.9 million OSMO. Any future release of those tokens would require a separate governance decision.

At the current burn rate, about 2% of OSMO’s supply is destroyed each year. The proposal would end new issuance that would otherwise offset those burns.