Mantra to Burn 16.5% of OM Tokens to Boost Staking Rewards After 90% Price Crash
1min read Mantra, a platform specializing in the tokenization of real-world assets, has announced plans to burn approximately 16.5% of its total om token supply, valued at around $160 million. This move is aimed at enhancing staking rewards following discussions with key partners. The proposal involves burning up to 300 million of the 1.8 billion OM tokens in circulation, which will reduce the bonded ratio from 31.47% to 25.30%. The burn includes 150 million OM tokens, worth about $80 million, from the founder John Patrick Mullin, along with additional tokens held by ecosystem partners. The specifics of these additional tokens were not disclosed in the update released on Monday.
Mullin's tokens are part of his team allocation, which were staked when the network was launched in October 2024. The burn process, which involves unstaking these tokens, is expected to be completed by April 29, when the tokens will be sent to the network’s burn address. The team has confirmed that the process of unstaking 150 million tokens from the Team and Core Contributor bucket has already begun.
This decision comes in the wake of a significant 90% price crash of the OM token on April 13, which resulted in the loss of over $5 billion in market value within a few hours. The Mantra team attributed this collapse to "reckless liquidations" by exchanges, amidst speculation that some investors were liquidating their positions. Mantra's platform allows users to tokenize real-world assets such as real estate and commodities, enabling compliant digital investments in tangible assets. The OM token is used to facilitate transactions and governance on the platform.
In January, Mantra formed a partnership with DAMAC Group, a conglomerate based in the UAE, to tokenize $1 billion in assets, including real estate, hospitality, and data centers. This partnership significantly boosted the value of the OM token. Prior to the crash, OM was one of the top market gainers in 2024, with its value increasing by over 400%. This substantial rise attracted the attention of traders and investors, despite relatively low public conversation on crypto-related social media.
Despite the burn announcement, the OM token's price has decreased by 3.3% over the past 24 hours, indicating a significant loss of investor confidence. The burn of tokens is a strategic move by Mantra to stabilize the market and restore trust among investors, following the recent volatility. The reduction in the total supply of OM tokens is expected to increase the scarcity and potentially the value of the remaining tokens, thereby enhancing staking rewards for holders. This action underscores Mantra's commitment to maintaining the integrity and value of its platform, even in the face of market challenges. 
