Osmosis community proposal proposes to permanently burn 100 million OSMO tokens from the community pool, representing approximately 12.6% of the current total supply.

on October 27, according to the Osmosis governance forum, community member JohnnyWyles launched a proposal discussion on the same day to permanently burn 100 million OSMO tokens from the community pool by sending them to a burn address, representing a nominal value of approximately $5.8 million at current market prices. This valuation is strictly nominal, as insufficient market liquidity would prevent full liquidation at spot prices.

In terms of background, following the passage of Proposal #957 and Proposal #967, the majority of newly issued daily OSMO has been directed into the community pool, establishing a "soft burn": while these tokens remain out of circulation, they can still be disbursed via future governance proposals. The community pool currently holds approximately 119.3 million OSMO, and with inflation having reached zero, it will cease receiving newly minted OSMO.

Should the proposal be approved, the total OSMO supply will decrease from approximately 794 million to roughly 694 million, leaving the community pool with approximately 19.3 million OSMO alongside all remaining assets.