Mantra CEO John Patrick Mullin Burns the Team's Token Allocation in Bold Attempt to Solve Community Issues and Boost Investor Confidence

In a bold attempt to solve community issues and boost investor confidence, Mantra CEO John Patrick Mullin has put out a burning the team’s token allocation

Mantra CEO John Patrick Mullin has sparked discussion in the Bitcoin community with his suggestion to burn the team’s token allocation in a bold attempt to solve community issues and boost investor confidence.

The disclosure, made via an official statement and a series of posts on X (formerly Twitter), comes as OM, the native token of the Mantra ecosystem, trades 88% below its weekly high.

The dramatic correction has shaken institutional and retail holders, many of whom feel that speculation about token unlocks and internal sell-offs sparked the strong wave of selling pressure.

OM had risen earlier in the year on the hope for Mantra’s expanding ecology and to be part of Real World Assets (RWA) within the DeFi scene. However, the sharp decline has quickly brought the project’s tokenomics and governance practices front and center.

Burning tokens essentially takes tokens out of circulation forever, which can cause deflation and potentially increase the value of the token. Here, Mullin’s suggestion to burn the team’s allocation represents a sacrifice of vested interests in favor of long-term project sustainability.

This action is meant to align the core team’s motivations with those of the broader community, Mullin asserts. “We respect the trust the community has placed in us,” he stated in a statement. “We are prepared to forfeit our portion to ensure a fairer token distribution and price stability, thus reaffirming trust.”

While specifics of the burn are still being developed, the CEO noted that it will affect a sizable portion of the tokens allocated to the founding team. Should this be carried out, this would be among the more forceful deflationary policies a DeFi protocol has undertaken lately.

The response from the Bitcoin community has been mixed but mostly positive. Many praised the openness and the CEO’s willingness to put the community first.

Some social media users lauded the move as a “powerful gesture” that might set a standard for other DeFi ventures navigating similar problems.

However, skeptics remain. They argue that while the burn would provide temporary relief, it might not be enough to offset broader market trends or underlying issues with the project’s tokenomics.

Others demanded more complete audits and transparency regarding future unlocks and staking incentives.

Despite the debate, OM’s price did show a slight recovery following the announcement, indicating at least some positive psychological impact of the plan on the market.

The decision to propose a token burn is a measure of leadership and a statement of long-term vision, not just a PR move. In a volatile DeFi environment where community trust can make or break a project, such actions could be crucial in maintaining relevance and investor interest.

Now, all eyes will be on whether the token burn comes to fruition as Mantra navigates this critical period and whether it helps OM find stability in the ever-changing crypto scene.