There are about 7.5m OSMO staked in the community pool via stOSMO at the moment which is slowly decreasing thanks to the fixed concentrated liquidity positions decaying as the redemption rate increases.
I agree that this should be minimized, but the 12.5m OSMO that supports the stOSMO, stkOSMO and qOSMO pegs has no real disadvantage for doing so since it doesn’t impact staking amounts apart from when assisting the peg and does not enter full circulation.
I’ve been putting out proposals one at a time (Re-evaluation of Liquid Staked OSMO held by the Community Pool and Deployment of stOSMO liquidity from stableswap into Locust vault being the most recent) but will get a more overarching plan out for discussion to tackle this issue.