Osmosis reduces the inflation rate by 50% in OSMO 2.0

ChainCatcher news, the largest decentralized exchange in the Cosmos ecosystem, Osmosis, has announced a significant update to its tokenomics model OSMO 2.0, reducing its inflation rate by 50% to around 11%. "This adjustment allows Osmosis to strike a balance between growth and stability, ensuring that tokens are distributed more smoothly over time," the team commented on the measure.

In addition, the Osmosis team stated that they are exploring the introduction of a protocol revenue burning mechanism to further offset the remaining inflation; and discussing the implementation of a liquidity pool fee switch to allow OSMO stakers to directly share in the Swap fees generated from the Osmosis liquidity pools.