# Prioritize Burn over Accumulation from Taker Fees
**URL:** https://forum.osmosis.zone/t/prioritize-burn-over-accumulation-from-taker-fees/3777
**Category:** Proposal Discussion
**Tags:** passed
**Created:** [June 30, 2025, 3:56pm UTC](https://forum.osmosis.zone/t/prioritize-burn-over-accumulation-from-taker-fees/3777 "2025-06-30T15:56:20Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@JohnnyWyles](https://forum.osmosis.zone/u/JohnnyWyles)
#### Post date: [June 30, 2025, 3:56pm UTC](https://forum.osmosis.zone/t/prioritize-burn-over-accumulation-from-taker-fees/3777/1 "2025-06-30T15:56:20Z")
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](https://daodao.zone/dao/osmosis/proposals/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](https://daodao.zone/dao/osmosis/proposals/903) as a burn mechanism.
## Proposed Parameters
This proposal would:
1. Change the non-OSMO taker fee split from
2. Change the OSMO fee split from
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
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### Author:  [@LeonoorsCryptoman](https://forum.osmosis.zone/u/LeonoorsCryptoman)
#### Post date: [July 7, 2025, 6:17pm UTC](https://forum.osmosis.zone/t/prioritize-burn-over-accumulation-from-taker-fees/3777/2 "2025-07-07T18:17:03Z")
The community pool currently already has quite some funds, so redirecting should not be a problem.
Also the APR on the asset will not be the main reason for people to buy and hold OSMO, it will need hype and more utility in the end.