MANTRA recently burned 150 million $OM tokens to boost its project following a sharp market decline. CEO John Mullin disclosed the decision on X, indicating an effort to rebuild confidence and enhance the MANTRA token value. The decision comes amid concerns following a significant market setback for $OM.
On April 13, 2025, the OM token plummeted by over 90%, dropping from approximately $6 to less than $0.50 within hours and erasing nearly $5.5 billion in market value. The abrupt decline caused widespread panic and allegations of insider dumping and exchange manipulation.
Data showed no major token inflows before the crash, suggesting forced liquidations on centralized exchanges triggered the fall. Despite its alliances and regulatory progress, the crash exposed liquidity and risk management vulnerabilities, shaking investor confidence in MANTRA.
MANTRA Token Burn Breakdown
Mullin began burning his entire 150 million $OM token allocation, expecting to complete the process by April 29, 2025, following the unstaking period. This burn reduces the total supply from 1.82 billion to approximately 1.67 billion $OM tokens.
Additionally, staked tokens will drop from 571.8 million to 421.8 million, reducing the bonded ratio and potentially raising staking payouts. MANTRA is working with ecosystem partners to burn another $ 150 million in $OM tokens, potentially raising the total burn to 300 million, which will tighten the supply and support token value.
The decision to burn up to 300 million OM tokens aims to restore faith and announce a new chapter for the MANTRA coin. By reducing the supply by approximately 17%, the team aims to increase scarcity, potentially supporting its value if demand remains steady. The burn will also reduce the bonded ratio from 31.47% to 25.30%, increasing the staking APR for participants. MANTRA ensures transparency with on-chain burning and a planned community vote for future burns.
Public and Market Response
Community reactions to MANTRA’s token burn have been mixed. John Mullin’s pledge to burn 150 million $OM demonstrates leadership accountability, but some investors question its long-term consequences.
Critics, like trader Samuel McCulloch, highlighted concerns that the CEO was burning his entire share, citing a lack of motivation. Meanwhile, others see it as a vital measure to reestablish trust after the crash. The team’s ongoing repurchase campaign and proposed DAO vote for further burns aim to boost confidence amid persistent doubts.
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