In a decisive move to rebuild trust and reaffirm its mission, MANTRA founder and CEO John Patrick Mullin has initiated the burn of his entire 150 million OM token allocation, permanently removing these tokens from circulation. This action follows through on a commitment made last week to bolster transparency and restore confidence within the community. The token burn is part of a broader strategy to create a decentralized, inclusive financial ecosystem driven by tokenization.
The Token Burn Process: A Transparent and Verifiable Initiative
The unstaking process for the 150 million OM tokens began earlier this week and is scheduled for completion on April 29, 2025 . These tokens were originally staked during MANTRA Chain’s mainnet launch in October 2024 to secure the network. Once the process is finalized, the tokens will be sent to the burn address: mantra1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqcg2my8 , effectively reducing the total supply by 150 million OM .
To ensure transparency, MANTRA publicly shared transaction hashes for the unstaking process. This allows for on-chain verification of the token burn. The move highlights MANTRA’s commitment to accountability and industry trends.
A Second Burn on the Horizon: Doubling Down on Deflation
In parallel, MANTRA is actively engaging with ecosystem partners to coordinate a second burn of 150 million OM tokens , which would double the total burn amount to 300 million OM . If completed, the combined burn would reduce the total OM supply from 1.82 billion to 1.52 billion , marking a substantial shift in the project’s tokenomics.
While there is no set timeline for the second burn, MANTRA continues negotiations and promises transparent updates to the community. This dual-phase approach highlights their dedication to addressing token inflation concerns. They aim to build a healthier and more sustainable ecosystem.
Impact on Staking Rewards and Network Dynamics
The burn of 150 million OM tokens will significantly impact staking dynamics. Staked tokens will drop from 571.8M to 421.8M OM. The bonded ratio will fall from 31.47% to 25.30%. This change will boost staking APRs, encouraging users to stake more tokens.
Once the final burn transaction is confirmed on-chain, MANTRA plans to release a complete verification report, further solidifying its commitment to transparency.
Addressing the Controversy: Rebuilding Trust After the Flash Crash
The decision to burn tokens follows a dramatic flash crash on April 13. OM’s price plunged over 90% in an hour, wiping out billions in value. A $40 million token deposit into OKX reportedly triggered fears of insider selling.
Panic spread quickly as rumors of undisclosed deals and delayed airdrops triggered mass sell-offs. Excessive token supply concerns fueled the chaos, shaking investor confidence. The incident sparked skepticism and scam accusations against the project.
In response, Mullin announces the token burn to demonstrate commitment to transparency and community trust. While some appreciate the move, OM’s price remains volatile, trading around $0.54, down over 90% from its peak. Despite the announcement, trading volumes and open interest remain subdued, with the token yet to show clear signs of recovery.
Industry Trends and Long-Term Implications
The token burn highlights a trend among blockchain projects to use deflationary mechanisms. MANTRA reduces supply and boosts staking rewards for users. This approach aims to build a balanced and rewarding ecosystem.
However, regaining trust will require more than just token burns. MANTRA must continue to deliver on its promises, engage with its community, and provide clear updates on its progress. The success of the upcoming burn and the outcome of ongoing negotiations will play a crucial role in determining whether OM can regain its footing and fulfill its potential as a cornerstone of the MANTRA ecosystem.
Final Thoughts
The burn of 150 million OM tokens by MANTRA’s founder represents a bold step toward rebuilding trust and stabilizing the project’s ecosystem. By reducing the total supply, enhancing staking rewards, and fostering transparency, MANTRA is taking meaningful steps to address concerns and create a more sustainable future for its community.
As the crypto market watches closely, the coming weeks will reveal whether these efforts can translate into tangible improvements for OM and its ecosystem. For now, all eyes remain on MANTRA as it navigates this critical phase in its journey.
