osmo

The Cosmos ecosystem decentralized exchange Osmosis has restored the reserve support for Alloyed BTC asset allBTC through a governance proposal. Previously, the Nomic cross-chain bridge minted 40.650602 nBTC on June 25 without Bitcoin reserve backing, of which 39.839746 was counted as collateral for allBTC, causing the support rate of allBTC to drop to 63.97%. After Nomic suspended operations on September 7, Osmosis validators froze 22.650608 allBTC held by the attacker through an emergency upgrade.According to the passed proposal, Osmosis will transfer the frozen attacker assets to the liquidity sub-DAO and utilize 12.4838 allBTC held in the community pool, as well as approximately 4.7 BTC released from the canceled USDC liquidity deployment, to fill a gap of about 39.84 BTC. The subsequent v32 software upgrade will mark the contaminated nBTC as invalid, withdraw it from the allBTC alloy, and destroy it, allowing allBTC holders to restore full support.The proposal indicates that approximately 18 BTC has been transferred out of Osmosis and laundered through Tornado Cash, making it impossible to recover directly. Osmosis stated that it will continue to track the remaining funds and restore the deposit and withdrawal functions of allBTC after the allBTC balance reaches zero and nBTC is removed from the alloy.

OSMO plans to destroy 100 million $OSMO from the community pool, accounting for approximately 12.6% of the circulating supply.

The decentralized exchange Osmosis based on Cosmos has terminated the issuance of OSMO tokens and shifted the source of staking rewards from newly issued tokens to protocol revenue.This adjustment eliminates approximately two percentage points of the staking annual yield supported by the issuance, while freezing about 51.9 million previously minted developer tokens.

According to the official announcement from Akash Network, the decentralized cloud computing network Akash has initiated Governance Proposal No. 346, which plans to migrate the network from its Cosmos sovereign chain akashnet-2 to the Solana mainnet. Voting will start at 23:02 Beijing time on October 26 and will end at 23:02 on November 2, with approximately 98.29% of votes in favor.According to the proposal, if it passes and the token and migration portal audits are completed (expected to take 2 to 3 weeks), AKT will launch on Solana as an SPL token, migrating at a 1:1 ratio while retaining the token symbol. The one-way migration portal will be open for 2 years, and staked AKT must be unstaked (21 days) before migration. The proposal does not set a switch date; market migration will require a separate switch proposal. Akash stated that the choice of Solana is mainly based on factors such as operating costs under load, the absence of a single operator, and the aggregation of the DePIN ecosystem.

The liquid staking token bOSMO issued by Backbone Labs nearly exhausted its contract support after a large redemption in the Osmosis community pool. A disclosure on the Osmosis forum on October 15 revealed that approximately 40,508 OSMO were designated for compensation to 1,037 accounts. The disclosure author Johnny Wyles stated that the staking contract has overpaid for each redemption since at least April 2026, settling at approximately 1.676 OSMO per bOSMO, while the declared exchange rate of the contract was about 1.117 OSMO.The vulnerability repeatedly counted the OSMO staked on Backbone's own validators, allowing redeemers to receive about 50% more assets, at the cost of diluting the support for remaining holders. The defect was exposed when preparing to liquidate the community pool position, and the passed governance proposal 1049 authorized the withdrawal of the Margined managed treasury position and the destruction of the reclaimed OSMO when it ceased managing liquidity operations. The pool's bOSMO treasury holds approximately 1.137 million bOSMO, accounting for about 97% of the total supply of the token; the redemption transaction executed on October 9 at 21:59 ET destroyed 776,000 bOSMO and began unbinding approximately 1.3 million OSMO.Compensation is based on the qualified balance at block 72,237,940, calculated at 1.1174 OSMO per bOSMO. bOSMO purchased after the snapshot is not included in the compensation, and underlying holders in the liquidity pool and other contracts are also included;

According to the official announcement, the Osmosis community forum has initiated a discussion on the proposal to "Terminate OSMO Inflation Issuance." The proposal aims to stop the mint module from daily issuing OSMO, with staking rewards coming entirely from protocol revenue; based on the current burn rate, approximately 2% of the OSMO supply is destroyed each year, and there will be no new issuance to hedge.The target date for the proposal to go on-chain is October 20, and the daily vesting release for developers will also be paused. There are approximately 51.9 million OSMO remaining in the vesting module account, and any future releases will require a separate governance decision.

The decentralized trading protocol Osmosis in the Cosmos ecosystem stated on X that two proposals aim to destroy approximately 17.4 million OSMO, which is equivalent to 65% of the total OSMO that has been destroyed so far.Osmosis indicated that the two proposals will withdraw liquidity from the community pool that is no longer functioning and destroy the recovered OSMO. The project also released proposal discussion links for the community to read and discuss.

The decentralized trading protocol Osmosis in the Cosmos ecosystem announced that the maintenance mode of the past few months is coming to an end, and active development will resume. The team stated that the first step is to streamline the core product, including simplifying the tokenomics, focusing on the treasury, and enabling the network to act faster when needed.Osmosis proposed three adjustments to OSMO, all of which will be submitted for on-chain governance. First, further reduce inflation, decrease the circulation of new OSMO, and stop injecting newly minted OSMO into the community pool, making the network rely more on actual revenue. Second, destroy most of the OSMO held by the community pool, as well as the OSMO previously allocated from the community pool. Third, the treasury will only provide liquidity for the core liquidity pool, with a complete list to be published before the changes take effect.The team also plans to reduce the active validator set to 30, stating that a smaller set helps with security incident response and chain upgrade coordination, and aligns with a low-inflation model. Osmosis stated that streamlining the protocol is to prepare for future expansion, as it remains the central venue for IBC asset trading, and seeks community input on the direction of the next steps.

Cosmos Labs disclosed that on September 22, Neutron encountered a governance attack that led to the theft of liquidity from protocols such as Astroport, with approximately 1.73 million ATOM subsequently transferred by the attacker to Cosmos Hub. The Cosmos Hub itself was not attacked, and user funds were not affected. To prevent the stolen ATOM from being transferred out, Hub validators temporarily paused the network for about 24.5 hours and resumed block production on September 23 based on the patched Gaia v28.3.0.Cosmos Labs stated that during the pause, 1.227 million ATOM remained in the attacker's Hub address. When the network was restored, these were transferred to a 4/6 multi-signature address composed of Nansen, Keplr, Enigma, Silknodes, Kiln, and Polkachu through a one-time change. Previously, about 500,000 ATOM had been exchanged for ETH via THORChain and could not be recovered; another 169,000 ATOM entered the attacker's address after the network was restored due to THORChain refunds and were sold after being transferred to Osmosis. The current multi-signature address holds approximately 1.227 million ATOM, which can only be returned after authorization from a Cosmos Hub governance proposal. The related funds will not be staked, lent, or traded. The Neutron team expects to submit a recovery plan and related governance proposals next week.

The Cosmos ecosystem protocol Neutron faced a governance proposal that was manipulated by an attacker. The related address spent approximately 20,199 USDC to buy NTRN and staked 31.6 million NTRN about 12 minutes before the voting ended, ultimately allowing the proposal to pass with an 82% approval rate. Subsequently, the management rights of 11 contracts were transferred to the attacker, and they migrated to malicious code, stealing approximately 4.4 million dollars in assets.To recover the funds, Cosmos Hub validators coordinated a chain halt for nearly 24 hours and 48 minutes, and during the restart process, approximately 1.23 million ATOM were transferred from the attacker's wallet to a new address, with plans to return them to the original holders.

The official Cosmos Hub announced on platform X that the validators have successfully restarted the Cosmos Hub network as scheduled, block production has resumed, the network is operating normally, and they will continue to monitor the network status and provide further updates.

Cosmos Ventures, a venture capital firm, has announced its establishment. Brendan McCord and Matt Mandel launched Fund I with a scale of $77.6 million, which will support philosopher-type builders who establish institutions for the AI era. McCord is the founder of Cosmos Institute and Cosmos Ventures, while Mandel comes from Union Square Ventures. The fund has invested in AIUC, Prime Intellect, Workshop Labs (which has been acquired by Thinking Machines), and an undisclosed education company. LPs include Reid Hoffman, Joe Liemandt, Stand Together, Fred Wilson, Micky Malka, and Astera Institute.Cosmos Ventures stated that AI represents the largest institutional building window since the founding of the United States. The world has previously developed around the assumption of intelligence being bound to humanity, and AI is breaking this binding, with many necessary institutions yet to be established. Institutional coding theorizes how to live together, and founders must answer normative questions that machines cannot answer and become philosopher-type builders. The institution proposes the slogan for the AI era, "Condere aude," which means dare to create.

According to the official statement from Osmosis, the proposal for the solution regarding the previous Nomic chain nBTC incident is now online and has officially entered community discussion.According to the proposal, the Osmosis governance community will consider confiscating the previously frozen assets of the attacker and using the accumulated BTC in the community fund pool to cover the remaining collateral gap, in order to restore the full collateral support for Alloyed BTC. Currently, this plan still needs to go through governance discussion and voting, and the asset confiscation or collateral replenishment has not yet been completed.

According to PR Newswire, Cosmos announced the launch of the Cosmos Partner Network, uniting multiple industry service providers to assist global financial institutions in advancing digital asset-related businesses through the Cosmos Tokenization Suite and digital ledger solutions.The suite offers capabilities such as 24/7 payment settlement and fund management for banks and credit unions, and supports scenarios like programmable custody, programmable trade finance, and agency commerce. Cosmos provides tokenization and ledger platforms, while partners offer integrated services such as KYC/KYB, custody, and compliance monitoring.Cosmos Co-CEO Maghnus Mareneck stated that financial institutions understand the potential of tokenization but struggle to transition from pilot projects to high-quality real customer experiences. This network brings together relevant professional institutions to reduce the complexity of individually connecting with vendors.The first batch of the network includes 17 participants, including Anseta, Balance, BCW Group, BitGo, Blockchain.com, Blockdaemon, Coinbax, DFNS, Galaxy Digital, Hypernative, InfStones, OpenZeppelin, Peersyst Technology, Silence Laboratories, Ubyx, Utila, and Zeeve.Partners will have access to connection opportunities across Cosmos public and private networks and can participate in use cases such as tokenized deposits that Cosmos is promoting. Cosmos plans to continue expanding the network.

Osmosis posted on platform X that due to a security incident with the Nomic nBTC cross-chain bridge, Osmosis has suspended the minting and redemption of BTC Alloyed assets, and deposits and withdrawals have been simultaneously suspended.The BTC on Osmosis is backed by 30% nBTC. The team will soon release a complete post-mortem analysis and recovery plan. BTC in the pool is still tradable, and users are reminded to be aware of the risks.

Cosmos Labs released a technical report, admitting that it previously misjudged an integer underflow vulnerability in the Cosmos EVM, which led to attacks on six blockchain networks between August 20 and 25, resulting in a total theft of approximately $5.7 million in tokens. The attacker exploited the vulnerability to underflow account balances to the maximum value of 2^256-1, then performed a reverse operation to transfer the inflated balance out, thereby stealing tokens from the target accounts without creating tokens out of thin air.The report shows that researchers submitted the defect through a bug bounty program on April 25, but testers were unable to reproduce it on the existing Cosmos chain configuration, so Cosmos Labs silently patched it in May. Independent researchers confirmed in early August that the vulnerability affected all Cosmos EVM chains, and Cosmos Labs released a patch on August 19, but the first attack occurred about 20 hours later.In terms of specific losses, MANTRA lost 720.9 million tokens (approximately $3.6 million), TAC lost nearly 3 billion TAC, and KiiChain lost about 148 million KII. Both MANTRA and KiiChain criticized Cosmos Labs for not notifying the affected chains in advance and suggesting a shutdown, with KiiChain stating that the patch would take several days to deploy while a shutdown would only take a few minutes. Cosmos Labs stated that it has coordinated responses with 40 chains and assisted 13 chains in completing repairs or shutdowns before being attacked.

The Interchain Foundation stated that it is committed to supporting the development of the Cosmos ecosystem and recognizes the impact of recent Cosmos EVM events on teams that rely on Cosmos technology for deployment.To this end, the ICF is establishing a discretionary funding program to support affected chains collaborating on remediation efforts. As part of the same program, the foundation will invest resources alongside the community to further enhance security practices, infrastructure, and incident response capabilities across the ecosystem.The foundation will continue to invest in the resilience and security of Cosmos, with more details on the new funding program to be announced in the coming days.

Cosmos Labs announced that an ongoing security incident has affected users of the Cosmos EVM module. The security and engineering team at Cosmos Labs is actively responding to the incident and has advised validators on the Cosmos EVM chain in contact with them to suspend the operation of their chain.Cosmos Labs appreciates the swift response from all teams using Cosmos EVM and stated that an incident report will be released after the situation is resolved. If relevant teams are using Cosmos EVM and have questions, they can contact security@cosmoslabs.io.