- Mantra CEO to burn 150M OM tokens to rebuild belief after the 90% Mantra price crash.
- 81% of the group has backed the burn proposal.
- Whereas some are optimistic in regards to the affect of the token burn, the OM price continues to battle at $0.50.
After the dramatic 90% Mantra price crash on April 13, 2025, because of reckless liquidations, Mantra’s founder and CEO, John Patrick Mullin, has introduced a daring plan to burn his private allocation of 150 million OM tokens.
This transfer goals to rebuild belief within the Layer 1 blockchain centered on real-world asset tokenization.
Whereas the April 13 crash worn out over $5 billion in market capitalization in mere hours, Mullin’s dedication to burn tokens valued at roughly $82 million at present costs has shocked the crypto group.
Group overwhelmingly helps Mullin’s proposal
An X ballot carried out by John Patrick Mullin has garnered over 8,900 votes, with over 81% of respondents backing the quick burning of his tokens.
This sturdy endorsement displays the group’s want for decisive motion to attempt to assist the OM token get better.
In line with the burn proposal, the tokens, presently being unstaked, can be despatched to the community’s burn tackle by April 29, 2025.
The method ensures transparency and adherence to protocol guidelines.
Mantra can be exploring a bigger burn with ecosystem companions, with discussions underway to incinerate a further 150 million OM tokens.
This might complete to 300 million tokens being burned, or 16.5% of the 1.817 billion complete provide.
Such a discount might considerably alter the token’s provide dynamics.
If profitable, the entire OM token provide would drop to roughly 1.517 billion OM tokens.
Potential affect of the proposed Mantra token burn
The burn is predicted to affect Mantra’s tokenomics positively.
It’ll scale back the bonded ratio from 31.47% to 25.30%. Staked tokens will lower from 571.8 million to 421.8 million.
This adjustment will enhance the staking APR for remaining tokens.
Increased staking rewards might incentivize holders to lock up their OM. Decreased promoting strain may assist price stability.
Nevertheless, regardless of the announcement, OM’s price has remained stagnant, presently buying and selling at roughly $0.5396, up by solely 0.1% previously 24 hours.
Following the burn announcement, the token noticed a slight uptick to an intraday excessive of $0.5585 earlier than rapidly falling again to the $0.50 vary.
Presumably, the continuing unstaking course of could also be delaying vital price motion, whereas market skepticism persists after the crash’s shock.
Roughly 4 million OM tokens unlock each few weeks, and with 45% of the provision nonetheless locked, promoting strain might counteract the burn’s advantages.
The April 13 crash raised suspicions of foul play, with group members accusing the Mantra workforce of orchestrating a sell-off, claims that Mullin and investor Laser Digital firmly denied.
Can Mantra’s price get better in case of a burn?
Presently, OM’s price struggles to interrupt above $0.55, particularly with the continuing unlocks and potential liquidations looming giant.
Going by this, the market sentiment stays cautious, and the burn’s psychological affect might not totally materialize till it’s full.
Nevertheless, in the long run, the burn might lay a basis for progress.
A 16.5% provide discount is substantial, and paired with staking incentives, it might tighten the circulating provide, resulting in a traditional supply-demand curve that might lead to a hike in price.