Following a 90% Price Decline, Mantra Plans to Burn $160M OM Tokens, Half of Which Are From the DAO’s Founder

Mantra to Burn $160M OM Tokens After Price Plunge, Aims to Restore Market Confidence

Mantra, the platform focused on tokenizing real-world assets, has revealed plans to burn up to 16.5% of its total OM token supply, valued at approximately $160 million, in a move to rejuvenate staking rewards. This follows a major price crash earlier this month, which saw the OM token’s value plummet by 90%.

The proposal involves burning up to 300 million OM tokens from the platform’s 1.8 billion token supply. This will reduce the bonded ratio from 31.47% to 25.30%. Notably, 150 million OM tokens, worth about $80 million, are part of a tranche belonging to the platform’s founder, John Patrick Mullin, and the rest are tied to ecosystem partners, though specifics have not been disclosed as of the latest update.

These tokens, which were staked during the network’s launch in October 2024, are now being unstaked as part of the burn process. The entire process is expected to be completed by April 29, when the tokens will be sent to the designated burn address.

“We’ve begun unstaking 150 million tokens from the Team and Core Contributor allocation,” the team confirmed in a recent statement.

This move follows the catastrophic 90% drop in OM’s price on April 13, which wiped out over $5 billion in market value in a matter of hours. The Mantra team has blamed “reckless liquidations” by exchanges during the sell-off, speculating that some investors were liquidating positions in response to the sharp decline.

Mantra, which specializes in the tokenization of real-world assets such as real estate and commodities, has faced challenges but continues to promote its OM token as essential for transaction facilitation and governance. The platform recently partnered with DAMAC Group to tokenize $1 billion in assets, a move that initially boosted the OM token’s value.

Despite this burn initiative, the OM token has seen a 3.3% decline in the past 24 hours, showing that investor confidence remains shaky. Despite being one of 2024’s top market gainers, the token’s recent decline has left many traders on edge.