Small DEX in comparison to ETH but relevant in its circle with a solid infrastructure. The focus on horizontal integration might enable a more robust vertical integration in the close future.

Top and unique innovations: Superfluid staking ensures liquidity, network security, and exciting yields. Self-governing pools give more power to providers and increase the potential for decentralization.

However, 50% of tokens are still going to be issued and inflation might not be matched by the growth of the ecosystem.

Also, ‘mercenary’ money might leave when the incentives decay if there are no further developments.

After the genesis supply in June 2021, instead of issuing tokens every block like other Cosmos chains, Osmosis issues tokens at the end of each epoch (one day). Similar to Bitcoin’s halving method, Osmosis’ token issuance follows a ‘thirdening’ schedule. This means that the issuance level is cut by one-third every year. In other words, during the first 365 epochs (year one), the issuance of OSMO tokens was 300 million. During year two, starting on the 20th of June 2022, Osmosis will issue 200 million tokens. In year three, the amount decreases to 133 million tokens. With this method, the circulating supply will reach 90% of the total supply by the end of year 6. Nonetheless, this process will continue until the circulating supply reaches the maximum supply of 1 Billion OSMO.

This means that OSMO will be highly inflationary in the beginning but, over time, the issuance tapers off and becomes a lesser percentage of the circulating supply.

Final distribution

After the genesis supply, the issuance of the rest of the supply gets distributed on the following basis:

The current state of supply of the OSMO token is shown in the picture below gathered from Mintscan. As we can see, around 47% of the total supply has already been minted and only about 23% of the circulating supply is liquid because tokens are locked in delegations, in liquidity pools, or belong to the community pool.