In a dramatic effort to restore faith in MANTRA, CEO John Patrick Mullin is burning his entire allocation of 150 million OM tokens. This move follows a shocking 90% crash in the token’s value on April 13, 2025, when OM plunged from over $6 to under $0.55 in less than an hour. The crash wiped out approximately $5.5 billion in market capitalization, sending shockwaves through the MANTRA community.
Token Burn Aims to Cut Supply and Boost Staking Rewards
The 150 million OM tokens, originally staked to support the MANTRA Chain mainnet launched in October 2024, are now being unstaked. This process is expected to finish by April 29, 2025. Once completed, the tokens will be sent to a burn address, permanently removing them from circulation. This initial burn will reduce the total OM supply from 1.82 billion to 1.67 billion.
In addition to Mullin’s contribution, MANTRA is collaborating with ecosystem partners to coordinate a second burn of 150 million OM tokens. If successful, the total burn would reach 300 million tokens, bringing the total supply down to 1.52 billion.
Key outcomes expected from this supply reduction include:
- A decrease in the bonded ratio from 31.47% to 25.30%
- Potential rise in on-chain staking APRs
- Greater incentives for long-term holders to stake OM
Transparency Push and Community Response
As part of its effort to regain credibility, MANTRA has also introduced a real-time dashboard. This tool offers users a transparent view of OM token supply, operational wallets, and other important on-chain metrics.
Reactions to the token burn have been mixed. Some investors see it as a strong move toward transparency and accountability. However, others remain wary, questioning whether a token burn alone can resolve deeper issues such as liquidity challenges and risk management gaps.
The crypto community is closely watching MANTRA’s next moves. While the token burn may help stabilize OM’s value and rebuild trust, long-term recovery will likely depend on more than just reducing supply. The effectiveness of MANTRA’s strategy could offer lessons for other projects facing similar setbacks in a volatile market.
