Mantra Calls for Industry Cooperation After OM Token Crash

Mantra, a decentralized finance (DeFi) platform, has issued a call for industry-wide cooperation to mitigate investor risks following the sudden crash of its OM token. In an update published on April 30, Mantra emphasized that the incident was not an isolated event but a broader issue affecting the entire crypto industry.

Mantra CEO John Mullin highlighted the role of "aggressive leverage positions" on exchanges as a significant threat to investor safety. He warned that liquidation cascades, similar to the one that caused the OM token crash, could occur to any project in the crypto industry. This underscores the need for improved market stability and risk management practices across the board.

In response to the crash, Mantra has taken several steps to enhance its governance and operational resilience. The platform has pledged to accelerate its validator diversification efforts, aiming to reduce internal validators by half and onboard 50 external partner validators by the end of Q2 2025. This move is part of a broader strategy to decentralize the Mantra chain and improve its overall security and stability.

Additionally, Mantra has burned 150 million staked OM tokens, permanently removing them from the total supply. This action is intended to enhance the token's scarcity and value. The platform has also introduced a real-time dashboard featuring tokenomics data to increase transparency. Furthermore, Mantra has begun alpha testing a new Ethereum Virtual Machine-compatible testnet called Omstead, aimed at improving technical resilience.

The update also noted that the Mantra chain continued to operate without interruption during the price drop, even with transaction volumes at all-time highs. This demonstrates the platform's ability to handle high levels of activity and maintain operational stability under stressful conditions.

Mantra's call to action extends beyond its own platform, urging global centralized exchanges to review their leverage policies. The platform is cooperating with major exchanges to improve market stability and is calling on the rest of the industry to provide input on how exchange policies can minimize risks to investors. This collaborative approach aims to create a more secure and stable environment for all participants in the crypto industry.