Mantra CEO Burns 150M Tokens Following 90% Price Crash

TLDR

• Mantra CEO John Patrick Mullin has begun the process of burning 150 million OM tokens
• The burn will reduce total supply to 1.67 billion tokens and decrease staked tokens by 26%
• Mantra is working with partners to burn another 150 million tokens, bringing total burn to 300 million
• The initiative follows a 90% price collapse on April 13, reportedly triggered by a $40 million token deposit
• Staking APR will increase as the bonded ratio drops from 31.47% to 25.30%

John Patrick Mullin, founder and CEO of Mantra, has initiated the burning of 150 million OM tokens in an effort to restore value and rebuild trust following a major price collapse. The token burn process began on April 21 and is expected to be completed by April 29, when the tokens will be permanently removed from circulation.

The decision comes after Mantra’s OM token experienced a dramatic 90% price drop on April 13. The crash reportedly occurred after a $40 million token deposit into OKX by a wallet allegedly connected to the team, which sparked fears of insider selling and led to mass liquidations across exchanges.

“This is a first step in rebuilding trust with the community, but far from the last,” Mullin stated regarding the token burn initiative. The process involves unstaking his tokens that were originally staked during Mantra Chain’s mainnet launch in October 2024.

Supply Reduction and Staking Benefits

Once completed, the burn will reduce Mantra’s total token supply from 1.82 billion to 1.67 billion OM. The number of staked tokens will drop by over 26%, from 571.8 million to 421.8 million OM.

This reduction will have direct benefits for token holders who stake their OM. The bonded ratio will decrease from 31.47% to 25.30%, resulting in higher staking annual percentage rates (APRs) for participants in the network.

The unstaking process can be verified through publicly shared transaction hashes. Once the final burn transaction is confirmed onchain, Mantra plans to release a complete verification report for full transparency.

The tokens will be sent to a burn address identified as “mantra1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqcg2my8.” This address permanently removes the tokens from circulation, effectively tightening the supply.

Plans for Additional Burns

Mantra is not stopping at this initial burn. The project is currently in talks with “key ecosystem partners” about burning an additional 150 million OM tokens. If successful, this would bring the total burn amount to 300 million OM.

This expanded burn would further reduce the total supply to 1.52 billion tokens. The combined effort represents a major shift in Mantra’s tokenomics aimed at creating more value for holders.

The token burn is part of a broader “OM Token support plan” announced by Mantra following the price crash. This plan also includes a token buyback program, which Mullin has indicated is “well underway.”

In addition to the burn initiative, Mantra has released a tokenomics dashboard to increase transparency. This tool is designed to help restore community trust by providing clear visibility into token distribution and circulation.

The burn follows a commitment Mullin made on social media two days after the price collapse. He posted to X (formerly Twitter) that he intended to burn all of his staked tokens that were allocated at the blockchain’s mainnet genesis, which were originally scheduled to be unlocked starting in 2027.

Mullin also conducted a poll on X to gauge community sentiment about the proposed burn. The poll presented alternative options such as extended vesting or unlocking tokens at specific milestones. Some commenters criticized this poll as an attempt to backtrack on the burn commitment.

Despite these efforts, the OM token price remains down around 90% from its pre-crash value of $6.30, trading below $0.55 at the time of reporting. The price collapse on April 13 reportedly involved panic spreading quickly amid rumors of undisclosed over-the-counter deals, delayed airdrops, and excessive token supply concentration.

The move reflects growing industry trends among tokenized projects that seek to build credibility through transparent and deflationary supply mechanics. By reducing the total supply, Mantra aims to create more scarcity and potentially drive up the value of remaining tokens.

Once the burn process is complete on April 29, the tokens will be permanently removed from circulation, marking a key milestone in Mantra’s efforts to restore confidence in the project and its token.

The post Mantra CEO Burns 150M Tokens Following 90% Price Crash appeared first on Blockonomi.