$ATOM token burn?

Hi it’s hard to find the true information about the atom token burn that is currently implemented in the blockchain. Google says there is one but does not say how much if there is any taken from fee percentages. Still a novice but would like to know

AFAIK at the moment there is not burning implementation

is slashing a burn ? or is it a redistribution to other stakers ?

You are right slashing burns atom
Also proposal deposit is burnt if quorum is not reached or if it’s vetoed

But they are not recuring burning mecanisms

1 Like

That being said, I see the ATOM in the community pool as a temporary burn. Indeed, these ATOM are waiting to be used; currently, there are about 17 million ATOM in the community pool, and they are not in circulation.

In a way, I consider the community tax as a form of burn. To simplify, the ATOM allocated to the community pool can be seen as a burn, while the community pool’s expenditures act as a mint.

It is interesting to note that the ‘protorev’ module on Osmosis performs arbitrage on the DEX by temporarily minting new OSMO tokens for the operation. The OSMO tokens are created and then destroyed within the same block once the arbitrage is completed. The profit is immediate, and no one complains about inflation.
Of course it’s an easy win, minting osmo for protorev is a no brainer decision

All this to say that minting new ATOMs for a profitable investment should never be a concern.

This approach highlights an important perspective on how community funds are managed. By treating the ATOM in the community pool as temporarily removed from circulation, it creates a buffer effect that limits the immediate inflationary pressure on the circulating supply.

However, this also depends heavily on how the community perceives these funds—whether as a strategic reserve or as tokens effectively ‘burned’ until spent. The balance between accumulating funds for strategic investments and avoiding a perception of unused inflationary supply is crucial for maintaining trust and confidence in the network’s monetary policy.