1047

This proposal removes two assets from the list the community pool accumulates from taker fees. Both are being wound down by teams that support them within Cosmos.

• USDY (Ondo US Dollar Yield)
• wstETH (Lido wrapped staked ETH via Neutron)

Background

The community pool taker-fee whitelist was established in [Hidden link] and last set in [Hidden link]. Whitelisted assets are accumulated in the community pool. Any other non-OSMO taker fees are swapped to the default denomination, currently BTC.

[Hidden link] removed USDN from this whitelist after Noble placed USDN into maintenance mode, so that the community pool stopped accumulating a deprecated asset. This proposal applies the same reasoning to two further assets.

USDY

Ondo has announced that it stopped minting USDY on Noble on 8 September 2026 ([Hidden link]). USDY on Osmosis is bridged from Noble, so it is affected by the same wind-down. Ondo has set out two exit paths:

• Holders of 1,000 USDY or more can bridge back to Noble and redeem with Ondo at NAV, or move to another supported network, until 8 September 2027.
• Holders of less than 1,000 USDY can exit through third-party liquidity on Osmosis during a transition period ending 7 December 2026.

wstETH

wstETH on Osmosis is bridged through the canonical interchain wstETH contracts on Neutron. As part of Neutron's transition to long-term support ([Hidden link]), Hadron Labs maintained these contracts and their interfaces until 30 June 2026, and their stability is not guaranteed beyond that date. Holders are advised to bridge wstETH back to Ethereum ([Hidden link]).

Proposed Change

Update the whitelist to drop:

• ibc/23104D411A6EB6031FA92FB75F227422B84989969E91DCAD56A535DD7FF0A373 (USDY)
• ibc/2F21E6D4271DE3F561F20A02CD541DAF7405B1E9CB3B9B07E3C2AC7D8A4338A5 (wstETH)

The other five whitelisted denoms are retained unchanged:

Impact

After this proposal executes, any USDY or wstETH arriving in the community pool's share of taker fees is swapped to the default denomination (currently BTC) instead of being accumulated. Taker fee revenue in the other five whitelisted assets is unaffected.

Forum Post: [Hidden link]