New tokenomics voted in by Osmosis stakers aim to keep the decentralized exchange “at the forefront of DeFi innovation.”
Dubbed Osmosis 2.0, revamped tokenomics could promote sustainability and boost community engagement if the adaptation is successful.
At the heart of the updated tokenomics is reduced inflation and extended emissions. Osmosis governance has said “yes” to lowering inflation by 50 percent and shifting emissions from liquidity providers and its community pool to stakers.
A max supply of one billion tokens will stay in place and Osmosis is doubling down on concentrated liquidity with Supercharged Liquidity. According to Osmosis, they will be improving upon concentrated liquidity mechanisms from “other DeFi platforms to offer an easy to use, highly efficient liquidity provision solution.”
Osmosis says incentivizing long-term stakers to secure and govern the network “underscores Osmosis’ commitment to creating a sustainable and user-centric ecosystem.”
Governance discussions are being had about fee share and burn mechanisms which could provide additional benefits for stakers of OSMO. A “fee switch” for liquidity pools would allow stakers to share in swap fees. A burn feature could offset the already reduced inflation and may lead to a deflationary model.
Osmosis has shown it’s willingness to adapt and evolve and the new tokenomics should have a positive impact on the premiere exchange for Cosmos.
