MANTRA Burns 150 Million $OM Tokens to Boost Its Project Following a Sharp Market Decline

MANTRA recently burned 150 million $OM tokens to boost its project following a sharp market decline. CEO John Mullin disclosed the decision

MANTRA is burning 150 million $OM tokens to salvage its project following a sharp market decline, CEO John Mullin announced via X. The decision, first reported by TokenPulse, showcases an effort to rebuild confidence and enhance token value.

This is a first step in rebuilding trust with the community, but far from the last. We will share more in the coming days about our plans to ensure alignment going forward. 🫡🕉️https://t.co/685jVsJNBA

— John Mullin (@jmullin_om) April 24, 24

The news comes amid concerns following a significant market setback for $OM. On April 13, 2025, the OM token collapsed over 90%, plummeting from approximately $6 to less than $0.50 within hours and wiping out nearly $5.5 billion in market value.

The abrupt decline caused widespread panic and allegations of insider dumping and exchange manipulation.

Data showed no major token inflows before the crash, suggesting forced liquidations on centralized exchanges triggered the fall. Despite its alliances and regulatory progress, the crash exposed liquidity and risk management vulnerabilities, shaking investor confidence in MANTRA.

MANTRA Token Burn Breakdown

Mullin began burning his entire 150 million $OM token allocation, which is expected to be completed by April 29, 2025, after the unstaking period. This burn will decrease the total supply from 1.82 billion to about 1.67 billion $OM tokens.

Moreover, staked tokens will drop from 571.8 million to 421.8 million, reducing the bonded ratio and potentially raising staking payouts. MANTRA is also cooperating with ecosystem partners to burn another 150 million $OM tokens, potentially increasing the total burn to 300 million, tightening the supply and supporting the token value.

The decision to burn up to 300 million OM tokens aims to restore faith and announce a new chapter for MANTRA. By reducing approximately 17% of the supply, the team aims to increase scarcity, potentially supporting its value if demand remains steady. The burn will also drop the bonded ratio from 31.47% to 25.30%, boosting staking APR for participants. MANTRA ensures transparency with on-chain burning and a planned community vote for future burns.

Public and Market Response

Community reactions to MANTRA’s token burn have been mixed. John Mullin’s pledge to burn 150 million $OM showcases leadership accountability, but some investors question its long-term consequences.

Like trader Samuel McCulloch, critics highlighted concerns about the CEO burning his entire share, emphasizing less motivation compared to investors who bought smaller amounts and might be more invested in the token's recovery.

However, others like blockchain researcher Hasu see it as a crucial measure to reestablish trust after the crash, especially with the team planning to propose a DAO vote for even more burns. The team’s ongoing repurchase campaign and proposed DAO vote for further burns aim to boost confidence amid persistent doubts.