Latest Osmosis (OSMO) News Update

Deep Dive

1. The Thirdening Cuts Emissions (1 July 2025)

Overview: Osmosis activated its scheduled "Thirdening," reducing annual OSMO emissions by one-third (9% → 6%). This deflationary mechanism occurs biennially to align incentives for long-term stakers and liquidity providers.

What this means: Reduced sell pressure from new token issuance could support OSMO’s price, though staking rewards now depend more heavily on protocol revenue ($19M+ cumulative as of August 2025). However, validators like Crypto Dungeon warned of consolidation risks, needing 300K OSMO delegations to stay active. (Osmosis)

2. Bithumb Halts OSMO Transfers (1 August 2025)

Overview: South Korea’s Bithumb suspended OSMO deposits/withdrawals to facilitate a mainnet upgrade targeting scalability and security improvements. Trading continued uninterrupted.

What this means: While routine, the pause highlighted Osmosis’ reliance on centralized exchange liquidity. The upgrade aimed to enhance cross-chain capabilities, critical for Cosmos interoperability. Post-upgrade, OSMO’s 30-day price slid 27%, aligning with broader crypto market trends. (BitcoinWorld)

3. AtomOne Fork Launches (2 October 2025)

Overview: AtomOne (ATONE), a governance-focused Cosmos fork, debuted on Osmosis with multiple liquidity pools. The project addresses philosophical divides in Cosmos, offering an alternative staking and governance framework.

What this means: While ATONE’s $81M market cap remains modest, its presence diversifies Osmosis’ trading pairs and reflects ongoing Cosmos ecosystem experimentation. However, fragmented liquidity across 10+ ATONE pools risks diluting Osmosis’ core DEX metrics. (Osmosis)

Conclusion

Osmosis balances supply constraints (Thirdening), technical upgrades, and ecosystem diversification (AtomOne) amid a challenging macro environment. While development activity remains robust—ranked top 10 among DEXes by code commits as of November 2025—the protocol faces liquidity fragmentation and validator centralization risks. Will reduced emissions and cross-chain integrations offset bearish market sentiment?

Deep Dive

1. @osmosis: Thirdening reduces emissions bullish

"Lowering OSMO emissions from 9% to 6% in The Thirdening"
– @osmosis (191K followers · 10.7K likes · 1 July 2025)
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What this means: Bullish for OSMO’s scarcity narrative as reduced sell pressure from lower inflation could support prices long-term, though short-term price action remains tied to broader crypto sentiment.

2. @cryptodungeonma: Validator squeeze bearish

"Need ~300K $OSMO delegations to re-enter active set"
– @cryptodungeonma (40K followers · 510K likes · 4 September 2025)
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What this means: Bearish for decentralization – validator consolidation risks could reduce network resilience. Monitor whether other validators face similar delegation shortages.

3. @cosmos: Revolut staking adoption neutral

"30% of total OSMO already staked via Revolut in EEA"
– @cosmos (564K followers · 6.6K likes · 17 July 2025)
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What this means: Neutral impact – while staking reduces liquid supply, Revolut’s 0% fee model might compress validator margins. Watch for stake concentration in custodial platforms.

Conclusion

The consensus on Osmosis is mixed – bullish tokenomics reforms clash with validator stress tests and competitive pressures. Track whether the 57% price decline YTD stabilizes post-Thirdening, and monitor validator delegation trends for network health signals. For interchain DEX watchers, the Neutron Supervaults’ 24 August challenge bears watching.

Deep Dive

1. Staking Rewards Reduction (July 2025)

Overview: Osmosis plans to reduce staking rewards derived from inflation by 50% in July 2025, shifting security costs to protocol revenue (taker fees, transaction fees). This follows the “Thirdening” event in June 2025, which lowered OSMO emissions from 9% to 6% (source).
What this means: This is neutral for OSMO in the short term – stakers may see lower yields, but reduced inflation could support price stability if adoption grows.

2. Top of Block Auction Fix (July 2025)

Overview: A bug allowing arbitrageurs to bypass premium payments for block priority is being patched. Post-fix, revenue from this module will fund OSMO buybacks via single-sided liquidity positions.
What this means: Bullish for OSMO – increased buybacks could tighten supply, while optimized arbitrage improves DEX efficiency.

3. Community Pool Overhaul (August 2025)

Overview: The community pool will transition from holding diverse assets to a Bitcoin-centric reserve. Non-OSMO taker fees will be split 25/75 (accumulation/buyback), with 70% of OSMO fees burned.
What this means: Bullish long-term – systematic burns and BTC reserves aim for net deflation and treasury resilience.

4. Fee Tiering Rollout (Q4 2025)

Overview: Fee discounts based on trading volume or OSMO staked will launch in Q4 2025, targeting high-frequency traders and loyal stakeholders.
What this means: Neutral-to-bullish – tiering could boost liquidity but depends on trader uptake and market conditions.

Conclusion

Osmosis is prioritizing supply sustainability (via burns and reduced emissions) and revenue optimization (auction fixes, fee tiering). While these changes could strengthen OSMO’s fundamentals, success hinges on governance approvals and maintaining liquidity during transitions. How might Cosmos Hub integrations (e.g., Partial Set Security) amplify these efforts in 2026?

Deep Dive

1. Top 10 DEX by Code Commits (25 November 2025)

Overview: Osmosis consistently ranks in the top 10 DEXes by code commits annually, signaling robust developer engagement.

Token Terminal data shows over 47,000 commits in 2025, reflecting active protocol iteration. High commit velocity correlates with faster feature deployment and vulnerability patching.

What this means: This is bullish for OSMO because sustained developer activity reduces technical debt and accelerates innovation. Traders benefit from quicker integrations (e.g., cross-chain swaps) and reduced systemic risks. (Source)

2. v30 Software Upgrade (5 August 2025)

Overview: Introduced permissionless pool creation and critical security patches.

The upgrade removed governance barriers for liquidity pool initialization, allowing any user to deploy pools without proposals. Backend improvements optimized IAVL tree operations for faster state queries.

What this means: This is neutral for OSMO short-term but bullish long-term. While lowering entry barriers could dilute liquidity temporarily, it fosters organic ecosystem growth and aligns with decentralized ethos. (Source)

3. Mainnet Performance Upgrade (1 August 2025)

Overview: Coordinated with Bithumb to implement scalability fixes and validator requirements.

The upgrade reduced block finality time by ~15% and introduced stricter slashing conditions for validator downtime. Exchanges like Bithumb temporarily halted deposits/withdrawals to ensure chain compatibility.

What this means: This is bullish for OSMO because faster transactions and stricter validator rules improve network reliability—a key factor for institutional liquidity providers. (Source)

Conclusion

Osmosis’ codebase evolves through high developer activity, permissionless infrastructure, and validator incentives. While OSMO’s price faces macro headwinds (-55% YTD), these updates strengthen its position as a Cosmos liquidity hub. How will cross-chain integrations (e.g., upcoming ZEC support) impact OSMO’s fee dynamics in 2026?