# Osmosis to Compensate 1,037 Accounts With About 40,500 OSMO

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/33206
Published: 2026-10-16T11:22:17.000Z
Updated: 2026-10-16T11:22:17.000Z
Section: Technology

> Payments will follow the affected tokens’ unbonding on Oct. 24, and recipients do not need to take action.

Osmosis will distribute about 40,500 OSMO to 1,037 bOSMO holders after a redemption-contract flaw caused users to receive roughly 50% more OSMO than owed, shifting the extra cost to other holders.

Since April, the contract has counted OSMO staked by validators owned by Backbone Labs more than once during each redemption. Compensation will go to accounts that held bOSMO at the snapshot, calculated at the pre-redemption rate of 1.1174 OSMO per bOSMO.

A single transaction on Oct. 10 redeemed about 776,000 bOSMO and withdrew roughly 1.2997 million OSMO. Those tokens are expected to complete unbonding on Oct. 24, after which the compensation will be sent automatically.

Backing for bOSMO has fallen sharply: redemptions through Backbone now return about 0.06 OSMO per token. The flaw remains unfixed, and new bOSMO can still be minted for about 0.039 OSMO, while some liquidity pools may price it well above its redemption value. Osmosis advised users against buying bOSMO or adding liquidity and urged current liquidity providers to withdraw.