Mantra CEO and Founder John Patrick Mullin announced plans to burn his allocation of 150 million team tokens.
This decision fulfills a commitment made just last week, which sought to demonstrate Mantra’s dedication to creating a transparent, trusted, and inclusive financial ecosystem through tokenization.
Mantra’s Token Burn
The tokens were staked at the Mantra Chain’s mainnet launch in October 2024 and were initially reserved to ensure network security. Now, the process of unstaking these 150 million OM tokens has begun, with the burn scheduled for completion by April 29th. Once they are unstaked and sent to the burn address, they will be permanently removed from circulation. The process will reduce the total supply of OM from 1.82 billion to 1.67 billion.
The burn is expected to have a noticeable impact on the ecosystem, particularly on Mantra’s staking metrics. The reduction in total supply will lower the amount of staked coins from 571.8 million OM to 421.8 million OM, decreasing the bonded ratio from 31.47% to 25.3%.
This is likely to result in a higher Annual Percentage Rate (APR) for stakers, as fewer tokens will be locked up, making staking more attractive for holders. In addition to this, Mantra is in talks with key ecosystem partners to implement a further burn of 150 million OM tokens, bringing the total amount to 300 million OM.
Mullin had previously pledged to burn all of his team’s tokens to restore confidence in the project, a decision sparked by the OM’s significant price collapse on April 13. The 300 million OM tokens set aside for the team and core contributors represent 16.88% of its total supply and were initially locked with a release schedule stretching from 2027 to 2029.
OM’s Price Collapse
The collapse of OM’s price was triggered earlier this month when leveraged traders were caught in a liquidity crunch. With many OM holders borrowing funds to amplify their trades, a downturn in OM’s price prompted automatic liquidations on platforms like Bybit and Binance.
This flooding of OM tokens into the market exacerbated the price plunge. Mantra had already been under scrutiny. Critics had even raised alarms about its governance and misleading investment claims, including a connection to the now-defunct FTX exchange.
Before the crash, significant amounts of OM were moved to Binance and OKX, which hinted at premeditated selling. The market’s low liquidity then sealed OM’s fate – there were not enough buyers to offset the sell-off, leading to a sharp price drop. While some investors, including Laser Digital and Shorooq Partners, were linked to key wallets involved, they denied any wrongdoing in the collapse.
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