This proposal marks the end of regular manual BTC purchases from the Osmosis community pool, as recent changes now enable automatic daily accumulation and conversion.
It also initiates a one-time cleanup of idle or unsupported assets to simplify and align the community pool with the current asset whitelist.
Current Status
Proposal 881 signaled that 25% of Osmosis’ non-OSMO taker fees should be used to purchase BTC and provide liquidity in the BTC/USDC pool.
Since then, several upgrades have improved how the community pool accumulates and manages revenue:
- Proposal 952 updated the default denom for community pool accumulation to BTC, ensuring non-whitelisted assets are converted into BTC.
- Proposal 955 reduced accumulation to the community pool, increasing the proportion of OSMO burned instead.
- Proposal 965 limited the asset whitelist to a focused set of strategic tokens.
As a result, the current system:
- Directs 25% of non-OSMO taker fees to the community pool.
- Retains assets if they are on the whitelist: USDC, USDN, USDY, USDT, BTC, ETH, wstETH, SOL.
- Automatically converts non-whitelisted assets into BTC.
This setup provides a consistent, scalable revenue stream focused on an adjustable set of assets for the community pool to be primarily denominated in. This entire flow takes place after the 75% allocation to the OSMO buyback.
Proposed Changes
This proposal enacts two changes:
-
Remove the Manual BTC Buyback Signal
With the current automated accumulation and conversion process in place, manual intervention to purchase BTC is no longer required. This proposal officially removes the need for such recurring governance proposals.
-
Cleanup and Consolidation of Community Pool Holdings
The proposal initiates the exchange of most assets to a comparable equivalent in the accumulation whitelist, simplifying treasury management:
- Stablecoins → USDC
- Top 400 Market Cap Assets → BTC
- All other tokens → OSMO, to be burned
Assets are excluded from this conversion if they:
- Were deployed by governance proposal in the last year (CL positions, Margined position, Magma positions),
- Are included in the current accumulation whitelist
- Are used for ongoing protocol incentives or experiments (e.g., LAB buyback by Mad Scientists),
- Were minted at genesis (e.g., ION).
The Liquidity SubDAO will carry out these conversions and return all assets to the community pool upon completion.
Resulting Allocations
Due to this cleanup, the following will be acquired:
| Destination | Approx Value (USD) | Approx # |
|---|---|---|
| BTC | $530,000 | 4.5 |
| OSMO | $39,000 | 250,000 |
| USDC | $8,500 | 8,500 |
BTC and USDC will be returned to the newly simplified community pool.
OSMO acquired will be burned rather than returned to the community pool.
If an asset cannot be swapped on Osmosis due to insufficient liquidity or the amount is too small for exchange in the smallest denomination of the intended target, it will be burned rather than returned to the community pool.
Target Onchain Date: Friday 15th August
What’s the plan here? Helping killing ATOM so Osmosis can try rebirth like a phenix emerging from the ashes of what’s left of the cosmos ecosystem?