Osmosis community passes proposal to halt OSMO inflationary issuance and shift to protocol revenue distribution.

According to Osmosis' governance page, Proposal 1053, "Terminate OSMO Inflation Issuance", passed on October 26, with a 91.07% support rate and 65.38% voter turnout. Following approval, Osmosis will halt OSMO token issuance via inflation. Staking rewards and community pools will no longer receive new tokens, with staking returns now relying entirely on protocol revenue, including transaction fees. Meanwhile, the daily unlock and release of roughly 30,440 OSMO for developers will be suspended. The remaining ~51.9 million OSMO will stay in the developer vesting module account; any future releases will require separate governance approval. The proposal notes that ending inflation will eliminate dilution from new token supply, while transaction fees and ProtoRev-generated burns will directly reduce the token supply. Though the ~2 percentage point annual percentage rate (APR) contribution from inflation-linked staking rewards will vanish, the proposal projects this loss will be partially offset by the ~1.7 percentage point additional APR from Proposal 1052, which raised the transaction fee allocation ratio.