Latest Osmosis (OSMO) News Update

Deep Dive

1. @osmosiszone: The Thirdening cuts inflation bullish

"Lowering OSMO emissions from 9% to 6%"
– @osmosiszone (1 July 2025 · 12:04 PM UTC+0)
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What this means: This is bullish for OSMO because reduced emissions (now 6% annual inflation) decrease sell pressure from new token creation, potentially improving scarcity dynamics if demand persists.

2. @cryptodungeonma: Validator exit crisis bearish

"We need ~300K $OSMO delegations to re-enter the active set"
– @cryptodungeonma (4 September 2025 · 2:13 PM UTC+0)
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What this means: This is bearish for OSMO as validator attrition could weaken network security and decentralization – a critical concern given 30% of OSMO is already staked via Revolut and other platforms.

3. @AirdropGlideapp: Neutron rivalry heats up bearish

"Supervaults are eating @osmosiszone's lunch in TIA/DYDX swaps"
– @AirdropGlideapp (24 August 2025 · 8:44 AM UTC+0)
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What this means: This is bearish for OSMO as competition threatens Osmosis’ $41B lifetime trading volume moat – though v30’s permissionless pools (August upgrade) aim to counter with improved flexibility.

Conclusion

The consensus on Osmosis is mixed – bullish on tokenomics (lower inflation, Revolut staking adoption) but bearish on validator stability and Neutron competition. Watch whether the 24-hour trading volume ($6.17M) recovers from its 27% weekly drop as v30 upgrade effects materialize.

Deep Dive

1. Validator Set Shakeup (4 September 2025)

Overview:
Crypto Dungeon, an Osmosis validator, warned it needs ~300K OSMO ($49K) in delegations by September 4 to remain in the active set after being pushed out due to a reduced validator count. This highlights the competitive staking environment in Cosmos ecosystems, where validators require minimum stakes to secure the chain.

What this means:
This could temporarily reduce network decentralization if smaller validators exit, but community-driven restaking efforts might offset risks. Validator churn is common in PoS chains, though concentrated stakes could raise centralization concerns. (Crypto Dungeon)

2. $20M Protocol Revenue Milestone (21 August 2025)

Overview:
Osmosis crossed $20M in lifetime protocol revenue, driven by swap fees and strategic asset accumulation. Revenue supports staking rewards, BTC treasury buys, and the community pool for grants.

What this means:
Sustainable revenue strengthens OSMO’s value proposition by funding real yield for stakers and ecosystem growth. This metric aligns with Osmosis’ deflationary roadmap, which aims to reduce OSMO supply via burns and lower emissions. (Osmosis)

3. Mainnet Upgrade Prep (5 August 2025)

Overview:
Bithumb paused OSMO transactions to accommodate Osmosis’ mainnet upgrade, targeting improved scalability and cross-chain functionality. The upgrade introduced permissionless pool creation and code optimizations.

What this means:
Short-term exchange disruptions are neutral for price but signal long-term health. Enhanced infrastructure could attract more projects to Cosmos’ interchain ecosystem, though delayed resumptions might temporarily dent liquidity. (CoinMarketCap)

Conclusion

Osmosis is navigating validator dynamics while monetizing its DEX dominance and upgrading core infrastructure. The $20M revenue milestone and deflationary tokenomics contrast with staking centralization risks, creating a mixed but growth-oriented narrative. Will community delegations stabilize the validator set, or will consolidation alter Osmosis’ security model?

Deep Dive

1. Fee Tiering Implementation (Q4 2025)

Overview: Osmosis plans to introduce fee discounts based on users’ trading volume and OSMO staking levels. This aims to incentivize high-frequency traders and long-term stakers, potentially increasing platform activity. The tiered system will be implemented via governance-approved parameter changes.
What this means: Bullish for OSMO if adoption rises, as higher trading volume could boost protocol revenue and burns. However, fee reductions might temporarily lower revenue if volume growth lags.

2. ProtoRev Module Optimization (Q3 2025)

Overview: The protocol’s arbitrage module (ProtoRev) is under review to maximize revenue from cross-pool arbitrage. Changes could redirect more profits to OSMO burns and community pool allocations.
What this means: Neutral-to-bullish – optimized arbitrage could increase daily burns by 15–20% (Tokenomics Roadmap), but depends on market volatility and liquidity depth.

3. Developer Vesting Reporting (Q3 2025)

Overview: Osmosis will update its circulating supply calculation to include developer-vested tokens, increasing reported supply by ~9%. This aligns with standard tokenomics practices but may temporarily pressure price perception.
What this means: Bearish in the short term due to supply visibility, but bullish long term by improving credibility for institutional investors.

4. Grants Program Renewal (January 2026)

Overview: The Osmosis Grants Program (OGP) seeks $1.35M to fund ecosystem projects, focusing on infrastructure (e.g., Polaris integration) and developer tools. Previous grants saved 3.8M OSMO via incentive optimizations (OGP v4 Proposal).
What this means: Bullish if funded projects drive user growth, but execution risk remains if grants fail to deliver measurable ROI.

Conclusion

Osmosis is prioritizing protocol-owned revenue streams and supply discipline while expanding its developer ecosystem. The combination of fee tiering, burns, and strategic grants could strengthen OSMO’s deflationary trajectory – but success hinges on governance consensus and broader crypto market conditions. How might Cosmos’ interchain activity trends influence Osmosis’ liquidity and fee revenue in 2026?

Deep Dive

1. v30.0.3 Codebase Fixes (8 September 2025)

Overview: This update introduced FIFO (First-In-First-Out) ordering for the default mempool, resolving transaction prioritization issues and patching critical bugs affecting node stability.

The release prioritized transaction fairness and reduced edge-case risks like chain halts. Binaries for Linux (amd64/arm64) and Docker images were updated, ensuring smoother node operations.

What this means: This is bullish for OSMO because it improves network reliability and transaction fairness, reducing risks for validators and users. (Source)

2. Mainnet Upgrade (5 August 2025)

Overview: The v30 upgrade enabled permissionless pool creation and introduced under-the-hood optimizations for security and scalability.

Exchanges like Bithumb temporarily halted OSMO deposits/withdrawals during the upgrade to avoid compatibility issues. The changes aimed to enhance cross-chain interoperability and validator performance.

What this means: This is neutral-to-bullish for OSMO, as it strengthens long-term infrastructure but required short-term coordination with third parties. (Source)

3. Thirdening Emission Cut (July 2025)

Overview: Osmosis’ biennial “Thirdening” slashed OSMO’s inflation rate by 33%, reducing emissions from 9% to 6% annually.

This deflationary mechanism, embedded in the protocol’s codebase, aims to balance supply growth with ecosystem incentives. The cut followed a governance-approved roadmap to align emissions with usage.

What this means: This is bullish for OSMO because reduced sell pressure from emissions could improve token economics, though liquidity incentives may adjust. (Source)

Conclusion

Osmosis’ codebase reflects a focus on scalability (v30 upgrades), security (bug fixes), and sustainable tokenomics (Thirdening). With over 47,000 commits in 2025, development velocity remains strong. How will reduced emissions impact validator participation and liquidity incentives moving forward?