Mantra Burns 150M OM Tokens! Plans to Burn 150M More

In a bold move to restore investor confidence and rebalance its tokenomics, MANTRA, the Web3 infrastructure platform behind the OM token, has announced the burn of 150 million OM tokens previously allocated to its founder and CEO, John Patrick Mullin. 

This burn, scheduled for April 29, 2025, will significantly reduce the total supply of OM tokens and reshape the staking rewards landscape for participants.

Why Is MANTRA Burning Tokens?

The decision to burn tokens follows the April 13 flash crash, when OM lost over 90% of its value within just one hour. Blockchain analytics tied the crash to a sudden deposit of 40 million OM tokens into the OKX exchange—an event widely speculated to have originated from internal sources. This spurred a wave of forced liquidations and panic selling, eroding community trust.

To counter the negative sentiment and demonstrate a long-term commitment to the ecosystem, Mullin has opted to permanently destroy his 150 million OM token allocation, which had been locked in staking since MANTRA Chain’s mainnet launch in October 2024. The technical unstaking began this week and will conclude with a public, irreversible transfer to a designated burn address.

What Is a Token Burn?

A token burn is a process where cryptocurrency tokens are intentionally sent to an unrecoverable wallet address (often called a "burn address"), removing them from circulation forever. Projects do this to reduce inflation, increase scarcity, and potentially stabilize or boost the token’s value. 

Burn events are also used to demonstrate transparency and accountability, especially after incidents that shake investor confidence.

Also read Taking a Look at Mantra's New Dashboard: A Place to Keep Track of OM

A Second 150M OM MANTRA Token Burn Under Discussion

MANTRA is also engaging in discussions with ecosystem partners about the possibility of burning an additional 150 million OM tokens, which, if approved, would bring the total burn to 300 million tokens. While the second phase has not been finalized, insiders suggest the move is gaining traction among stakeholders who wish to restructure MANTRA’s tokenomics for the long term.

If both phases are completed, the OM token supply will decrease from 1.82 billion to 1.52 billion, a roughly 16.5% reduction. This supply adjustment aims to benefit long-term holders and improve the network’s economic sustainability.

OM Mantra Token Burn Effects on Staking Rewards

The upcoming burn will also alter MANTRA’s staking dynamics. Currently, OM’s staked supply stands at 571.8 million tokens, equating to a staking ratio of 31.47%. Following the burn, this will drop to 421.8 million tokens, or 25.30%, which will increase staking rewards for users who continue to participate in the network’s Proof-of-Stake consensus mechanism.

This shift is particularly relevant for yield-seeking investors, as lower competition for rewards means higher incentives for committed stakers.

Also read Why Mantra (OM) Price Crashed: Does Its Spiritual Mantra Hold Power?

OM Mantra Transparency and Community Rebuilding

In line with best practices in blockchain transparency, MANTRA has made the transaction identifiers for the unstaking and burn operations publicly available, allowing anyone to verify the actions via blockchain explorers such as Etherscan or OMScan.

By taking a proactive stance, MANTRA joins a growing list of Web3 projects leveraging token supply reduction as a means of rebuilding community trust and signaling long-term commitment. This strategy has previously been seen with projects like Binance’s BNB quarterly burns and Ethereum’s EIP-1559 fee-burning mechanism, both of which contributed to market confidence.

Also read What Did JP Mullin Say About OM's Tokenomics? A Statement to Face FUD

What’s Next for OM Token?

Despite the dramatic steps taken, OM has yet to show strong signs of recovery. As of this writing, the token hovers near $0.54, far from its earlier highs. 

Source: Coinmarketcap

Trading volume and open interest remain subdued, although some speculative traders are keeping an eye on the token for a potential rebound as supply continues to contract.

The success of MANTRA’s plan hinges on whether these burns, along with ongoing transparency efforts, will restore faith in the project’s fundamentals and attract new participants into its staking and DeFi ecosystem.

FAQs

1. What is the purpose of burning OM tokens?
Burning OM tokens helps reduce the total circulating supply, potentially increasing the token’s value and enhancing staking rewards for active participants.

2. Why did OM’s price crash in April 2025?
The crash was reportedly triggered by a 40 million token deposit into the OKX exchange, leading to speculation, forced liquidations, and a broader sell-off.

3. How does this burn affect staking?
With fewer tokens in circulation and fewer staked tokens, the staking ratio drops, which increases the yield for those who continue staking OM.

4. Are token burns common in crypto?
Yes, many projects like Binance and Ethereum use token burns to manage inflation, stabilize value, and build investor trust. MANTRA’s burn aligns with this trend.

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