The Mantra Team is Planning a Token Burn! Will This Help Price Recover?

2025-04-16

Mantra (OM) CEO John Mullin has pledged to burn 300 million locked OM tokens. The announcement comes just days after the OM token experienced a catastrophic price crash on April 13, wiping out more than $5.5 billion in value.

As the crypto world processes the shock, questions loom: Can this drastic gesture bring OM back from the brink? And what does it really mean for the future of Mantra? Read more!

A Desperate Move to Win Back Trust

Mantra Team is Planning a Token Burn.

John Mullin’s statement on X (formerly Twitter) was direct and heartfelt: “I’m planning to burn all of my team tokens, and when we turn it around, the community and investors can decide if I’ve earned it back.”

This isn’t just symbolic. The 300 million OM tokens in question account for 16.88% of the total OM supply, valued at roughly $236 million at current prices.

These tokens were locked and scheduled to be released between April 2027 and October 2029, ensuring long-term team incentives. But now, Mullin is ready to give them up entirely—if that’s what it takes to rebuild the community’s confidence in Mantra.

Some members of the crypto community have welcomed the move, seeing it as a powerful gesture of accountability. Others, however, caution that removing long-term incentives might hurt the project more than help it.

Ran Neuner, founder of Crypto Banter, weighed in, calling the decision a mistake: “We want teams that are highly incentivized. Burning the incentive may seem like a good gesture, but it will hurt the team motivation long-term.”

OM, Mantra, Price Analysis

The drama began on April 13, when the price of OM crashed from a high of $6.30 to a low of $0.52, losing over 90% of its value in mere hours. While many were quick to assume insider manipulation or team missteps, Mullin and Mantra have strongly denied any wrongdoing.

In fact, they blamed the collapse on a series of reckless liquidations triggered by unexpected market volatility and tokenomics adjustments that were made back in October.

Exchanges like Binance and OKX reported heavy OM trading activity during the crash but denied any role in the downfall. According to these platforms, automated cross-exchange liquidations may have amplified the volatility and led to the dramatic plunge.

Despite the chaos, OM currently trades around $0.78, and Mullin says the recovery is already underway.

Mantra Recovery Strategy

In an effort to stabilize OM’s price and restore investor faith, Mantra plans to tap into its $109 million Mantra Ecosystem Fund. This fund may be used for strategic token buybacks and additional burns, actions aimed at reducing circulating supply and boosting the price organically.

Mullin also promised to release a detailed post-mortem report, explaining exactly what went wrong and how the team plans to move forward with transparency.

To avoid centralization concerns, Mullin floated the idea of a decentralized community vote to determine the final fate of the 300 million team tokens. This aligns with Mantra’s long-term vision of becoming a decentralized real-world asset (RWA) tokenization platform.

FAQ

1. What is the OM token burn?

The Mantra CEO, John Mullin, plans to permanently destroy 300 million OM tokens allocated to the team. This is a move to regain community trust after OM’s price collapse.

2. Why did OM's price collapse so suddenly?

The price crashed due to automated liquidations triggered by high volatility and changes in OM’s tokenomics—not due to any insider action, according to Mantra.

3. How will the token burn affect OM’s price?

Burning tokens reduces the overall supply, which may lead to price appreciation if demand remains or increases. However, it depends on broader market sentiment and execution of the recovery plan.