Community Pool Denom Whitelist Review

This proposal changes the list assets collected in the community pool from taker fees to be narrower in scope.

Current Status

Taker fees collected in non-OSMO denominations are split 25/75 between the community pool and an OSMO buyback for distribution to stakers or burn.

Of the 25% allocated to the community pool, whitelisted tokens are accumulated and other tokens are sold back to the default asset, which is currently BTC as set in Proposal 952.

Until Software Upgrade v30, this whitelist was identical to the Quote asset whitelist for concentrated liquidity pool creation.

Permissionless concentrated liquidity pool creation was approved in Proposal 634, resulting in this whitelist being expanded to include most assets on Osmosis until permissionless creation was implemented onchain.

As permissionless creation has now been fully enabled in the v30 Software Upgrade, this list can be reduced to assets which governance wishes to accumulate in the community pool.

The current whitelist can be found in the last quote asset expansion proposal: Proposal 924.

Proposed Change

The proposed whitelist is composed of high marketcap tokens which the community pool has a low allocation of compared to wider usage. This would replace the current whitelist, causing the community pool to accumulate only these assets from taker fees, while selling any other non-OSMO collected into the default denomination (Currently BTC).

This takes place after the non-OSMO share is allocated to the existing OSMO buyback.

Collected assets would be:

Symbol Reason Denom
USDC Main Stablecoin on Osmosis ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4
USDT Secondary Stablecoin factory/osmo1em6xs47hd82806f5cxgyufguxrrc7l0aqx7nzzptjuqgswczk8csavdxek/alloyed/allUSDT
USDY Yield Bearing Stablecoin ibc/23104D411A6EB6031FA92FB75F227422B84989969E91DCAD56A535DD7FF0A373
USDN Yield Bearing Stablecoin ibc/0C39BD03B5C57A1753A9B73164705871A9B549F1A5226CFD7E39BE7BF73CF8CF
BTC #1 Cryptocurrency factory/osmo1z6r6qdknhgsc0zeracktgpcxf43j6sekq07nw8sxduc9lg0qjjlqfu25e3/alloyed/allBTC
ETH #2 Cryptocurrency factory/osmo1k6c8jln7ejuqwtqmay3yvzrg3kueaczl96pk067ldg8u835w0yhsw27twm/alloyed/allETH
wstETH Yield Bearing ETH ibc/2F21E6D4271DE3F561F20A02CD541DAF7405B1E9CB3B9B07E3C2AC7D8A4338A5
SOL Low composition and liquidity compared to cross-ecosystem prevalence factory/osmo1n3n75av8awcnw4jl62n3l48e6e4sxqmaf97w5ua6ddu4s475q5qq9udvx4/alloyed/allSOL

Impact

The Osmosis community pool will only collect taker fee revenue in these assets. Excess taker fee revenue will be converted to BTC. This concentrates the Osmosis community pool’s revenue into a more manageable list of assets for future deployment.

Other assets may arrive in the Osmosis community pool from other sources such as ProtoRev.

This whitelist may be changed in future by governance if further assets wish to be accumulated in the community pool from taker fees.

Target Onchain Date: 6th August 2025

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