Osmosis Community Proposal Seeks to Permanently Burn 100 Million OSMO from Community Pool, Approximately 12.6% of Current Total Supply

TechFlow reported on October 27 that, according to the Osmosis governance forum, community member JohnnyWyles initiated a proposal discussion on October 27 to send 100 million OSMO from the community pool to an empty address to be permanently burned. Based on current prices, the nominal value is approximately $5.8 million. This valuation is only a nominal value; due to insufficient market liquidity, it cannot be fully liquidated at spot prices.

Background: Since Proposals 957 and 967 passed, most of the daily newly issued OSMO has been allocated to the community pool, forming a "soft burn": these tokens are not in circulation but could still be re-spent through future governance proposals. The community pool currently holds approximately 119.3 million OSMO, and because inflation has fallen to zero, it no longer receives newly issued OSMO.

If the proposal is approved, total OSMO supply will decrease from approximately 794 million to approximately 694 million, and the community pool will retain approximately 19.3 million OSMO and all other assets.

Source: TechFlow