MANTRA CEO Proposes 150M OM Token Burn After 90% Crash to Boost Recovery
LTB MANTRA’s Bold Move: CEO Proposes 150M OM Token Burn to Spark Recovery
Following a devastating 90% price crash on April 13, 2025, MANTRA’s CEO, John Patrick Mullin, has proposed a bold plan to burn his personal allocation of 150 million OM tokens, aimed at rebuilding trust and stabilizing the token’s value. The proposal has garnered an overwhelming 81% support from the community. Despite this positive reception, the OM token remains stagnant around $0.50, leaving investors questioning its potential recovery.
- 90% price crash on April 13, 2025
- 150M OM token burn proposed by CEO
- 81% community support
- Potential 16.5% supply reduction
The OM token, crucial to MANTRA’s Layer 1 blockchain focused on real-world asset tokenization, experienced a drastic fall from $6.32 to $0.49 in mere hours, erasing over $5 billion in market capitalization. The crash was attributed to “reckless liquidations” during periods of low liquidity, sending shockwaves through the crypto community.
In response, John Patrick Mullin, the visionary behind MANTRA, announced his intention to burn 150 million OM tokens from his personal allocation, valued at approximately $82 million. This proposal quickly gained traction, with an X poll receiving over 8,900 votes, and a resounding 81% backing the immediate burning of his tokens.
After the dramatic 90% MANTRA price crash on April 13, 2025, as a result of reckless liquidations, MANTRA’s founder and CEO, John Patrick Mullin, has announced a bold plan to burn his personal allocation of 150 million OM tokens.
The burn is scheduled to take place by April 29, 2025, with the tokens being sent to the network’s burn address. Mullin is also in discussions with ecosystem partners to potentially burn an additional 150 million OM tokens, totaling 300 million tokens or 16.5% of the total supply.
This proposed burn aims to significantly impact MANTRA’s token economics. The reduction in supply will decrease the bonded ratio from 31.47% to 25.30% and reduce staked tokens from 571.8 million to 421.8 million, boosting the staking annual percentage return (APR). The bonded ratio refers to the percentage of tokens locked in the network, while staking APR is the annual return on staked tokens. This could tighten the circulating supply, increase demand, and lay a foundation for long-term growth.
The burn is expected to impact MANTRA’s tokenomics positively.
However, despite the positive reception and potential for improved token economics, the OM token remains stubbornly stuck around $0.5396. Market sentiment remains cautious, with ongoing token unlocks and the threat of further liquidations casting a shadow over the project’s recovery prospects.
MANTRA’s unique focus on real-world asset tokenization, backed by its Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), could be a significant draw for institutional investors if trust is restored. Yet, the path forward is challenging, given the crypto landscape’s history of promising projects that underdeliver.
As we advocate for decentralization, freedom, and effective accelerationism, it’s crucial to confront the crypto world’s harsh realities. Scammers and reckless market behavior can undermine even the most promising projects. MANTRA’s situation is a stark reminder that while innovation is vital, trust and transparency are the foundation of any successful blockchain endeavor.
While the immediate impact of the token burn on the OM price remains uncertain, Mullin’s decisive action addresses the crisis head-on. Whether this will be enough to reignite investor confidence and spark a recovery remains to be seen. MANTRA’s journey is one to watch closely, as it navigates the treacherous waters of rebuilding trust in a skeptical market.
Key Takeaways and Questions
- What caused the 90% price crash of the OM token?
The crash was attributed to reckless liquidations during a period of low liquidity, exacerbated by high leverage and thin market conditions.
- How has the community responded to the token burn proposal?
The community has overwhelmingly supported the proposal, with 81% backing the immediate burning of Mullin’s tokens in an X poll, indicating strong faith in the project’s leadership.
- What is the expected impact of the token burn on MANTRA’s token economics?
The burn will reduce the bonded ratio and staked tokens, boosting the staking APR and potentially supporting price stability by reducing selling pressure.
- What is the current trading price of the OM token?
The OM token is currently trading at approximately $0.5396, showing minimal movement post-burn announcement.
- Can the proposed token burn lead to a price recovery for the OM token?
While the immediate impact on price remains uncertain due to ongoing unlocks and market skepticism, the burn could lay a foundation for long-term growth by tightening the circulating supply and increasing demand. However, market sentiment and external factors will play significant roles in determining the token’s recovery trajectory.
