Osmosis has ended its $OSMO token inflation program, reducing daily new issuance from approximately 91,324 tokens to zero as of October 26. Staking rewards will now be funded entirely by network fees rather than newly minted tokens.
Proposal 1053 estimated that the removal of the inflation subsidy would reduce staking APR by approximately two percentage points. The change marks a significant shift in Osmosis's economic model, transitioning from emission-based incentives to a fee-driven reward structure for validators and delegators.
Osmosis Ends $OSMO Inflation, Shifts Staking Rewards to Fee-Based Model
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