This is an expedited signaling proposal to increase the protocol-enforced minimum gas price to 0.025 uOSMO. This represents a 10x increase in transaction fees from the current rate of 0.0025 uOSMO.
Over the last several months Osmosis has witnessed a plague of arbitrage bot spam that has significantly and negatively impacted the performance of the chain. Several times, the chain has been so congested to the point that no transactions can get through, effectively halting the chain for users.
Most recently, this occurred during the launch of Celestia's TIA token and a significant upward price movement event for OSMO. This likely resulted in millions of dollars in lost volume on the Osmosis DEX.
While a solution for this in the form of an EIP-1559 fee market developed by Skip Protocol has been proposed for this, the chain cannot afford to wait for this solution to go live. The Osmosis chain is frequently and regularly unstable, impacting value flow to its core products, including the DEX itself, Levana perps, and Mars protocol. This event also represents a significant challenge to these products as they are reliant on consistent asset pricing across markets to prevent price manipulation attacks.
If passed, this proposal also signals to Osmosis contributors (Osmosis Labs) to propose a software upgrade within 7 days of the passage of this proposal implementing the proposed minimum fee changes.
This proposal is a temporary measure, and can be reverted once Skip's fee markets are live in production on the Osmosis mainnet (or can be disregarded if the fee markets are implemented before the time limits set forth in this proposal).
