Osmosis Proposes Burning 17.4 Million OSMO Tokens From Community Pool
Osmosis is considering the permanent removal of about 17.4 million OSMO tokens from positions held by its community pool, under two proposals aimed at withdrawing liquidity that is no longer considered useful.
The proposals, identified as forum threads 4142 and 4143, were initiated by JohnnyWyles on September 30. If carried out as planned, the on-chain actions are targeted for October 3, 2026. The proposed burn would increase the amount of OSMO burned to date by about 65%, according to the announcement.
Osmosis OSMO Burn Targets Old Liquidity Positions
The first proposal, 4142, focuses on static concentrated-liquidity positions held directly by the community pool, along with an NTRN/OSMO position funded through Proposal 700.
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| Source: wuBlockchain |
Four static positions are scheduled for withdrawal. Their combined value is about $418,000, with the largest component consisting of roughly 8 million OSMO in the stOSMO/OSMO replenishment position.
The recovered assets would not all be treated in the same way. OSMO recovered from the positions would be burned, while ETH would be returned directly to the community pool. Other recovered assets would be converted into BTC before being returned to the pool.
The proposal is intended to remove positions that are no longer serving their original liquidity purpose rather than liquidating the assets for general spending.
Second Proposal Follows Margined's Service Changes
Proposal 4143 concerns liquidity positions associated with Margined after the platform ended its custodial liquidity services.
The plan would result in an estimated burn of about 9.4 million OSMO. ETH and BTC recovered from the associated positions would instead be returned to the community pool, with a recoverable value of about $342,000.
Together with the first proposal, the two plans account for the approximately 17.4 million OSMO targeted for removal.
How the OSMO Burn Would Be Executed
The proposed transactions would be carried out through the Osmosis Liquidity SubDAO's 4/6 multisig arrangement, meaning at least four of six authorized signers must approve an action.
Once the relevant OSMO is recovered, the tokens designated for destruction would be transferred to a null address. Because the address is not controlled for normal transactions, those tokens would be permanently removed from circulation.
The planned execution date is October 3, 2026. However, both proposals remain in the forum discussion stage, meaning the proposed actions are not yet a completed on-chain event.
The plans also distinguish between OSMO and other recovered assets: OSMO is designated for burning, while ETH and BTC are retained by the community pool.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.