TechFlow reports that decentralized exchange Osmosis has announced major changes to its tokenomics model, OSMO 2.0, in its latest update, reducing the inflation rate by 50%. This marks Osmosis' transition from the early token distribution phase and underscores its commitment to ensuring long-term sustainability of the native OSMO token.
The team stated that this adjustment balances growth and stability, enabling a smoother token distribution. After the reduction, OSMO's inflation rate will be approximately 11%. They are also exploring the introduction of a protocol revenue burn mechanism to further offset remaining inflation, aiming to achieve a net deflationary model.
In addition, Osmosis governance is discussing implementing fee conversion for liquidity pools. This feature would allow OSMO stakers to directly share in swap fees generated by activities within Osmosis liquidity pools, thereby empowering them. While the launch timing for this feature has not yet been determined, governance efforts are reportedly progressing actively.
