In a decisive move to restore investor confidence, Mantra CEO John Patrick Mullin has begun the process of burning 150 million OM tokens. This action follows a significant price crash and aims to reduce the total supply, thereby potentially increasing the token’s value and staking rewards. The burn process is expected to complete by April 29, 2025, with discussions underway for an additional 150 million OM token burn in collaboration with ecosystem partners.
The move comes after OM lost 90% of its value, causing investors to lose faith in the project. Mullin intends to prove he will not sell tokens by burning his token allocation. This allocation was staked to secure the network at the October 2024 mainnet launch. We are unstacking the tokens and will permanently remove them from circulation by April 29, 2025, upon completion.
But Mullin isn’t stopping there. Mantra is in close talks with ecosystem partners to burn an extra 150 million OM tokens, which could bring the total supply down by 300 million. If this happens, it will reduce the total supply of tokens from 1.82 billion OM to about 1.52 billion OM, limiting the circulating supply and hopefully increasing the value of the token quite a bit after some time.
This reduction will notably affect how staking operates on the network. Currently, there are about 571.8 million OM tokens that are staked, but Mullin’s burn will reduce it to 421.8 million OM. The bond ratio is how much of the total supply is staked—it will go down from 31.47% to 25.30%. This will lead to a higher Annual Percentage Rate (APR) for stakeholders. Which will incentivize stakeholders to stay in.
Despite these efforts, investors remain unconvinced about other crypto/digital assets. Some doubt whether just burning tokens can bring back confidence from investors and counteract the fact that the price of OM dipped by another 5% after the news. Mullin, however, believes this is merely the starting point to restore Mantra’s integrity. He mentioned that there will be more measures, including continual buybacks and improved trust through a real-time tokenomics dashboard.
Currently, executing the recovery plan is the goal of the Mantra team. Mullin burning his allocation is a bold move, indicating leadership accountability and a willingness to make sacrifices for the long-term success of the project.
As the deadline of April 29 looms, expectations are high on whether the entire 300 million OM will be burned and whether it will be able to turn the project around. The team’s effort to rebuild is commendable, although it may take some time for heads to turn.
As OM holders and the bigger cryptocurrency community await the outcome of the latest updates, they eagerly hope for the inclusion of future updates on changes that will prove effective for the cause and future of Mantra.
