ChainCatcher report: The Cosmos ecosystem’s decentralized exchange protocol, Osmosis, has announced that its recent maintenance phase is coming to an end, and active development will resume. The team stated that the first step is to streamline the core product, including simplifying the tokenomics, focusing the treasury, and enabling the network to act more swiftly when needed. Osmosis proposes three OSMO adjustments, all of which will be submitted on-chain for governance. First, further reduce inflation by decreasing the issuance of new OSMO and halting the injection of newly minted OSMO into the community pool, making the network more reliant on actual revenue. Second, burn the majority of OSMO held in the community pool, as well as previously allocated OSMO from the community pool. Third, the treasury will provide liquidity exclusively to core liquidity pools; the full list will be published prior to implementation. The team also plans to reduce the active validator set to 30, noting that a smaller set improves response to security incidents and coordination of chain upgrades, while aligning with the low-inflation model. Osmosis emphasized that simplifying the protocol is preparation for future expansion, reaffirming its role as the central hub for IBC asset trading, and invited community input on the next steps for development.
Osmosis Exits Maintenance Mode, Plans to Reduce Inflation and Reduce Validators to 30
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Osmosis exits maintenance mode, sharing on-chain updates about its next steps. The team plans to reduce inflation, lower the validator count to 30, and simplify token economics. Three OSMO adjustments will be submitted to on-chain governance: lowering inflation, ceasing new OSMO allocations to the community pool, and burning most OSMO held there. The treasury will focus exclusively on core pools. This move aims to enhance coordination and prepare for future growth as the IBC trading hub.
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