Mantra to Eliminate $160M in OM Tokens, With 50% Contributed by DAO Founder, After 90% Price Plunge

Mantra to Burn $160M OM Tokens After Price Drop, Aims to Restore Confidence

Mantra, the blockchain platform specializing in tokenizing real-world assets, has announced plans to burn up to 16.5% of its total OM token supply, worth about $160 million, in a move to address the aftermath of a significant price crash earlier this month. The strategy aims to enhance staking rewards and reignite investor confidence following a 90% drop in OM’s price.

The burn will involve 300 million OM tokens from the platform’s total supply of 1.8 billion. This will decrease the bonded ratio from 31.47% to 25.30%. A large portion of the tokens to be burned, approximately 150 million OM (valued around $80 million), belong to Mantra’s founder, John Patrick Mullin, and were staked when the network was first launched in October 2024. Additional tokens will come from ecosystem partners, though no specific details have been provided in the latest update.

“The unstaking of 150 million tokens from the Team and Core Contributor pool has begun,” the team confirmed in an update. The burn process is scheduled to conclude by April 29, when the tokens will be sent to the designated burn address.

This announcement follows a sharp crash on April 13, when OM token lost over $5 billion in market value within hours. The Mantra team attributed the drastic drop to “reckless liquidations” by exchanges, speculating that some investors were forced to liquidate their positions during the sell-off.

Mantra facilitates the tokenization of real-world assets like real estate and commodities, creating a bridge between tangible investments and digital platforms. OM tokens are used for transactions and governance within the platform. Earlier this year, the platform partnered with DAMAC Group to tokenize $1 billion in assets, temporarily boosting the value of OM.

Despite the burn announcement, OM’s price has fallen by 3.3% in the last 24 hours, signaling a lack of renewed investor confidence. The token had previously seen a remarkable 400% surge in 2024, but recent events have left many traders cautious about its future.