Osmosis, a decentralized exchange protocol in the Cosmos ecosystem, said its maintenance mode over the past several months is about to end and active development will restart. The team said its first step will be to simplify the core product, with work focused on streamlining tokenomics, narrowing treasury deployment, and making the network faster to act when needed. As part of that plan, Osmosis outlined three OSMO changes that will all be submitted to on-chain governance. The proposals include cutting inflation further to reduce newly issued OSMO entering circulation, ending the flow of newly minted OSMO into the community pool, and shifting the network to rely more on real revenue. The team also proposed burning most of the OSMO held in the community pool, along with OSMO previously distributed from that pool, and limiting treasury liquidity provision to core liquidity pools, with a full list to be released before the changes take effect. In addition, Osmosis said it plans to reduce the active validator set to 30, arguing that a smaller set would help with security incident response and chain upgrade coordination while fitting a lower-inflation model.
Osmosis, a decentralized exchange protocol in the Cosmos ecosystem, said the maintenance mode it has operated under for the past several months is about to end, with active development set to resume.
The team said its first move will be to make the core product leaner. That includes simplifying tokenomics, focusing the treasury, and enabling the network to move faster when needed.
Three OSMO changes will go to on-chain governance
Osmosis laid out three OSMO adjustments, all of which will be submitted through on-chain governance.
- It plans to reduce inflation further, cutting the amount of new OSMO entering circulation, and stop sending newly minted OSMO to the community pool so the network relies more on real revenue.
- It also plans to burn most of the OSMO held by the community pool, as well as OSMO that had previously been distributed from the community pool.
- The treasury would provide liquidity only to core liquidity pools, with the full list to be published before the changes take effect.
Validator set could be reduced to 30
The team also said it plans to shrink the active validator set to 30. According to Osmosis, a smaller validator set would help with security incident response and coordination during chain upgrades, and would also fit a lower-inflation model.
Positioning for later expansion
Osmosis said the protocol simplification is intended to prepare for later expansion. It added that the platform remains the central venue for trading IBC assets and is asking the community for input on what to build next.
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