Osmosis has stopped minting OSMO, and the mechanics of how it happened matter more than the headline. On-chain Proposal 1053, “End OSMO Inflationary Emissions,” passed with 91.07% of a more-than-104-million-OSMO vote in favor, and the first daily epoch after passage produced zero new tokens. For holders, the durable point is that the supply side of the ledger no longer dilutes them; understanding the change requires separating what was minted from what was actually reaching the market.
The vote was not a narrow decision. Roughly 95.1 million OSMO voted yes against 9.3 million abstentions and fewer than 3,500 OSMO combined voting no or veto, across a window that ran from October 20 to October 25, 2026. The proposal works through the mint module’s parameters rather than any change to the token contract: it sets MintingRewardsDistributionStartEpoch to 100,000,000, a value the chain will never reach at one epoch per day, and routes the entire pool allocation ratio to the community pool.
The subtlety is that most of the minting being switched off was never entering circulation. Before the change the mint module distributed roughly 121,766 OSMO a day, but the allocation split sent 8% to staking rewards and 25% to a developer vesting release — about 40,000 OSMO a day combined that could reach the market — while the remaining 67% went to the community pool, where it sat as a soft burn. Ending issuance stops all three buckets at the source, but the change to circulating supply is the roughly 40,000 daily OSMO that can no longer appear.
This is the final step of a staged drawdown that began with two earlier proposals trimming issuance in steps, and it deliberately leaves the epoch_provisions value in place, so a raw query still reports the old daily figure even though nothing is actually minted from it. Osmosis was already net-deflationary by its own accounting — fee-based burns had outpaced issuance over the prior year — so ending issuance removes the last offset and leaves every burn working in a single direction.
That redirects staking rewards entirely onto protocol revenue — taker fees and transaction fees — instead of freshly created tokens. The proposal’s own text frames this as completing a move to revenue-funded yield, while acknowledging that the approximately 2% APR issuance had supplied is only partly replaced by a smaller share of taker fees introduced by an earlier proposal. Osmosis holds a modest amount of value locked relative to its market capitalization, so whether that fee income can keep stakers bonded is now an open question rather than a settled one.
The developer vesting account is the one remaining supply lever. The pre-minted OSMO still held there can no longer be released on a fixed schedule; any future release now requires a separate governance vote, making it the only remaining source of new supply entering circulation.
What to watch is observable, not speculative: staking APR in the coming epochs, and whether circulating supply holds flat or declines as burns continue. The supply-side catalyst is real; whether a purely fee-funded yield can hold the network together is the part the market is still pricing.
Adapted from Osmosis Ends OSMO Inflation as Proposal 1053 Passes: OSMO Jumps 19%.