2025-04-22
Mantra's OM token is the native utility
and governance token of the MANTRA Chain ecosystem, a decentralized finance
(DeFi) platform and layer-1 blockchain focused on real-world asset (RWA)
tokenization
On April 21, John Patrick Mullin, the CEO and founder of MANTRA announced that, he has decided to permanently destroy his entire personal allocation of 150 million OM tokens.
It comes after a major market crash on
April 13, when the OM token lost over 90% of its value in just an hour.
The crash is believed to have been
caused by a large deposit of 40 million tokens to the OKX exchange.
This deposit was linked to a wallet
that some think belongs to someone close to the project.
Rumors about secret deals and delayed
token distributions made things worse, leading to massive forced sell-offs.
Mullin is now in the process of
unstaking the 150 million tokens, which have been helping to secure the MANTRA
Chain since its launch in October 2024.
These tokens will be fully burned and removed
from circulation forever by April 29, 2025.
MANTRA is also considering burning
another 150 million tokens, which would bring the total reduction to 300
million. This would cut the overall token supply from 1.82 billion to 1.52
billion.
The burn will also affect how the
network works. With fewer tokens staked, the staking reward rate will go up for
those who continue to participate. The bonded ratio (the percentage of tokens
staked) will drop from 31.47% to 25.30%.
MANTRA says this move is part of a
larger trend in crypto, where projects cut token supply to build trust and
strengthen their communities. They also plan to release full proof of the burn
process and have shared transaction IDs so people can verify everything on the
blockchain.
