John Patrick Mullin, the founder and CEO of the Layer 1 blockchain MANTRA, has committed to burning 150 million OM tokens—valued at approximately $82 million—in a bid to restore confidence in the platform after a dramatic market collapse. The decision follows the catastrophic drop in OM’s value on April 13, which saw the token lose over 90% of its value, erasing more than $5 billion from its market capitalization in a matter of hours.
The token’s swift decline has left the MANTRA community reeling. In an effort to reassure stakeholders, Mullin explained that the token burn is a demonstration of his “unwavering commitment” to rebuilding the project and restoring trust within the ecosystem. The tokens will be unlocked by April 29, after which they will be sent to the network’s burn address, effectively removing them from circulation.
Burning tokens is a strategy that reduces supply, which may lead to an increase in value for the remaining tokens in circulation. Mullin also took to X (formerly Twitter) to clarify that no OM tokens had been sold by the MANTRA team during the crisis, distancing the team from any involvement in the token’s sharp decline.
In addition, MANTRA is exploring the possibility of increasing the number of burned tokens to 300 million, which would represent 16.5% of the total 1.8 billion OM tokens. This potential move is designed to reduce the bonded ratio from 31.47% to 25.30%, potentially improving staking rewards for users.
The crash was attributed to “reckless liquidations,” with MANTRA’s investors, including Laser Digital, denying any involvement in the events that led to the price collapse. Mullin also conducted a poll on X to gauge community support for the token burn. The poll, which attracted over 8,000 votes, showed strong backing for the plan, with 81% of participants in favor of the immediate burn.
Following the announcement, OM’s price briefly rebounded, though it has since experienced a slight decline. As of the most recent data, OM is down by 4% in the past 24 hours, according to CoinMarketCap.
Related topics:
Pi Network Price Predicted to Reach $5 as Whale Movements and Upcoming Events Fuel Optimism
Elizabeth Warren Warns Trump’s Potential Dismissal of Powell Could Trigger Market Crash
Cardano Price Forecast: ADA Bulls Eye $0.65 Amidst Rising Leverage and Political Commentary
