This proposal adjusts the distribution of taker fees by:
- Increasing the buyback allocation of non-OSMO taker fees from 45% to 75%
- Increasing the burn allocation of OSMO taker fees from 50% to 75%.
These changes aim to enhance token value accrual and align with the long-term sustainability goals of the Osmosis ecosystem.
Current Parameters
Taker fee collection occurs on the token that enters a trade; non-OSMO tokens are currently split:
- 55% Accumulation in the community pool
- 45% Buy back OSMO
This split was last adjusted in Proposal 881 to support the accumulation of BTC liquidity.
OSMO collections, both directly and via buyback, are then split
- 50% Distributed to Stakers
- 50% Burned
This parameter was last adjusted in Proposal 903 as a burn mechanism.
Proposed Parameters
This proposal would:
-
Change the non-OSMO taker fee split from
55% Accumulate / 45% Buyback → 25% Accumulate / 75% Buyback
-
Change the OSMO fee split from
50% Distribute / 50% Burn → 30% Distribute / 70% Burn
These changes increase the share of taker fees used for market purchases of OSMO, increasing direct buy-side pressure. The reduction in community-pool accumulation reflects a view that reserves are growing sufficient for ongoing strategic use.
The increased burn share reduces token supply at a faster rate while preserving meaningful staker rewards from revenue.
Impact
This calculation assumes that the OSMO portion of taker fees is 25%, which is currently typical but may change over time.
| Destination of Taker Fees | Before | After | Change |
|---|---|---|---|
 Burned OSMO |
29.4% | 56.9% | +93.7% |
 Distributed to stakers |
29.4% | 24.4% | -17.0% |
 Accumulate (community pool) |
41.2% | 18.7% | -54.5% |
Target Onchain Date: 3rd July 2025