Will the Token Burn Make OM More Bullish? Looking at Its Similarities with SHIB

MANTRA is moving forward with one of the most significant tokenomic changes in its history. The project is reducing OM’s total supply by 300M tokens. 

This decision, which includes the founder burning his 150M OM allocation, aims to rebuild community trust, raise staking APR, and improve the token’s long-term appeal. 

The move invites comparison to Shiba Inu’s well-known burn strategies. However, unlike SHIB, MANTRA has the advantage of being tied to a Layer 1 infrastructure with real-world applications.

The key question remains whether this burn will change market sentiment and bring price recovery or if OM still needs more time to stabilize. A deeper look into the supply mechanics, past comparisons, and trading activity helps put this move into perspective.

OM Supply Shrinks While Staking Rewards Increase

The initial 150M OM being burned is part of the founder’s team allocation. This burn is already in process, with full completion expected by April 29, 2025. 

These tokens were initially staked to help secure the network at launch but are now being unbonded and sent to a burn address. A second burn of another 150M OM is also being discussed with key ecosystem partners.

Together, these burns will reduce OM’s total supply from 1.82B to 1.67B tokens. That is a 8.2% supply reduction. 

This change also affects the staking pool. The number of staked tokens will decrease from 571.8M to 421.8M OM, which in turn lowers the bonded ratio from 31.47% to 25.30%. As a result, staking APR is expected to increase.

The design is meant to reward long-term holders. With fewer tokens competing for rewards, APR goes up. 

This strengthens incentives to keep tokens staked instead of selling them, potentially reducing future sell pressure. These mechanics could lead to more stable participation in the ecosystem and give holders a reason to stay invested despite recent volatility.

Token burns often improve supply dynamics, but the impact varies based on whether the market is focused on fundamentals or trading narratives. In OM’s case, the mechanics are in place, but broader adoption and confidence will need to catch up before price follows.

Read more: Mantra Burns 150M OM Tokens! Plans to Burn 150M More

SHIB’s Burn Model as a Reference, but OM Has Real Fundamentals

Comparing OM’s token burn strategy to SHIB provides useful historical context. Shiba Inu made headlines early in its lifecycle by burning massive amounts of tokens. 

Notably, a large portion was sent to Ethereum co-founder Vitalik Buterin, who eventually donated or burned the supply. 

Despite these high-profile actions, SHIB’s price action remained flat for long stretches. It did not rally again until a mix of exchange listings, meme popularity, and a broader bull market aligned.

The difference is that SHIB was mostly narrative driven. It had no working products at the time of its burn campaign. OM is in a different position. MANTRA is a Layer 1 blockchain focused on real-world asset tokenization, onchain compliance, and identity verification. 

It is not just about removing supply. OM is a utility token that plays a role in staking, governance, and access to decentralized products like DEXs, vaults, and DID-based KYC solutions.

MANTRA’s blockchain is already integrated with the Cosmos ecosystem through IBC, and the project holds a VASP license from Dubai’s VARA. 

This allows it to legally operate an exchange, provide custody, and offer broker-dealer services. These elements provide real-world credibility and make OM a token tied to infrastructure rather than pure speculation.

The fundamental difference lies in the purpose of the token and the depth of the ecosystem. While SHIB had to wait for infrastructure to follow the hype, OM’s infrastructure is already live. That makes its burn potentially more impactful in the long term, especially if market confidence returns.

Read more: Community Responds to Mantra's CEO Token Burn Plan

Market Conditions Still Dictate Short-Term Direction

Despite the burn announcement and strong fundamentals, the market has not yet responded positively. OM is trading at $0.5312, down 6.2% in the last 24 hours and more than 92% in the past month. 

The correction followed a major price surge earlier this year when OM spiked above $8. Since then, price action has been dominated by profit taking, sell pressure, and broader weakness across the altcoin market.

The fully diluted valuation still sits close to $965M, with a circulating market cap around $508M. Trading volume remains high at $205M per day, which shows that OM still has strong liquidity and active market participation. 

But technical indicators suggest weakness. Lower highs continue to form and the price has yet to find strong support.

Token burns and APR adjustments do not automatically reverse price declines. They work best when accompanied by growing demand, rising user activity, and positive sentiment. 

OM’s staking model may attract new interest over time, especially if APR continues to increase, but for now the dominant trend remains downward.

That said, the increased yield and reduced supply could help OM outperform once the broader market turns around. When capital begins returning to quality assets with infrastructure, OM may stand out for its improved supply structure and Layer 1 credibility.

Read more: Taking a Look at Mantra's New Dashboard

Trade OM on Bitrue

OM is now listed on Bitrue, offering users a reliable way to access the market and trade the token. Bitrue provides a trusted environment with real-time trading tools, competitive fees, and high liquidity. 

For traders looking to react to news like the token burn or adjust positions based on staking rewards, Bitrue offers a fast and accessible platform.

Whether you are accumulating OM for long-term staking or trading short-term price action, Bitrue supports a clean interface and active markets. Users can also set alerts, manage risk, and review performance with detailed charts and volume tracking.

Bitrue has a history of supporting both high-potential Layer 1 tokens and community-led projects. With OM’s burn event now in focus, Bitrue is one of the best platforms to stay involved with the token as it evolves in 2025.

Conclusion

MANTRA’s 300M OM token burn is a well-structured attempt to restore balance to its tokenomics and rebuild market trust. It reduces supply, raises staking rewards, and removes tokens from circulation that were originally held by the founding team. 

The burn mimics strategies used by tokens like SHIB, but OM brings real infrastructure to the table that SHIB did not have during its early days.

In the short term, OM still faces market headwinds. Price action has been weak, and broader sentiment remains cautious. 

Token burns alone are not enough to reverse a trend, especially when macro conditions are uncertain. However, burns like this lay the foundation for long-term growth.

Frequently Asked Questions

1. Will the OM token burn cause the price to increase?
Not immediately. Burns improve long-term supply dynamics but price still depends on market sentiment and buyer activity.

2. How is OM different from SHIB despite similar burn strategies?
OM has a functioning Layer 1 blockchain, regulatory licenses, and real utility. SHIB relied mainly on narrative and exchange listings in its early stages.

3. Where can I trade OM after the burn announcement?
You can trade OM on Bitrue, which offers reliable spot trading with high liquidity, making it easy to react to token updates like this one.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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