This proposal stops the community pool from accumulating a share of non-OSMO taker fees and adds that share to staking rewards. The share of taker fees burned remains unchanged.
Background
Taker fees collected in assets other than OSMO are split three ways: bought back as OSMO and distributed to stakers, bought back as OSMO and burned, or accumulated in the community pool. Proposal 955 set the community pool share at 25%, with the remainder split into the current staking and burn shares.
The community pool share was intended to build a treasury of reserve assets. That reserve now exists: after setting aside the BTC committed to restoring Alloyed BTC’s backing, the DAO holds about $1.8 million in non-OSMO reserve assets, with around $1.1 million deployed as liquidity. Most of it is USDC (about $0.9 million) and BTC (about $0.45 million). Continuing to add to it grows a balance that governance has to manage, while the same revenue could be paid to the stakers who secure the chain.
Proposed Change
| Non-OSMO taker fees | Staking rewards | Community pool | Burn |
|---|---|---|---|
| Current | 22.5% | 25% | 52.5% |
| Proposed | 47.5% | 0% | 52.5% |
The split for taker fees collected in OSMO (30% to stakers, 70% burned) is unchanged.
Impact
- Stakers receive the former community pool share as additional OSMO staking rewards: about 8,100 OSMO per day at the last 30 days’ volumes and today’s OSMO price, or roughly 1.7 percentage points of staking APR.
- Burn is unchanged.
- The community pool no longer accumulates taker fees. The community pool denom whitelist remains in place but no longer receives anything from taker fees.
- The community pool continues to receive revenue from other sources, such as ProtoRev, the Top of Block Auction and smaller fees like pool creation and incentive fees.
Target Onchain Date: 9th October 2026