MANTRA DAO Plans 90% Token Burn After 90% Crash

MANTRA DAO, a decentralized finance (DeFi) platform, is on the verge of announcing a token burn plan for its native OM token. This development follows a dramatic crash in the token's value, which saw it drop by over 90% in a single day on April 13, 2025. The sudden decline erased more than $5 billion in market capitalization, sparking widespread panic and speculation within the crypto industry. The crash has drawn comparisons to the Terra LUNA implosion, with various theories circulating about the cause, including insider dumping, forced liquidations, and exchange manipulation.

In response to the community's concerns, MANTRA DAO's Co-founder, JP Mullin, has been proactive in addressing the situation. He initiated a Twitter poll to gather opinions on the execution method of burning team tokens. The poll presented four options: immediate full burn, annual extension of vesting period, transfer to a community multisig wallet, and gradual unlock over time. Mullin emphasized that the decision to burn all team-held tokens was made for the community and that the poll aimed to understand everyone's views and attitudes on implementing this matter.

Mullin has also announced plans for an OM token buyback and supply burn to rebuild confidence in the token. He revealed a $109 million ecosystem fund dedicated to partnerships and technological advancements, aiming to restore trust and stability within the Mantra DAO ecosystem. The team has announced a series of corrective measures, including the destruction of team tokens and the creation of a comprehensive destruction program for the remaining OM tokens. Mullin has pledged to burn all of his team's tokens and start by putting his own allocation on the line, demonstrating his commitment to rebuilding trust.

MANTRA DAO's response to the crash has been multifaceted. The team has shared wallet addresses to assure the community that they have not run away and has denied that the price collapse was a result of an expiring deal with a market maker. Mullin has also stated that Mantra has tapped an unnamed blockchain analyst to investigate the underlying cause of the crash, though details remain confidential. The token burn plan is a significant step towards restoring confidence in the OM token. By reducing the supply, MANTRA DAO aims to stabilize the token's value and create a more sustainable ecosystem. The community's input on the burn decision is being sought, reflecting a commitment to decentralized decision-making. This move is expected to be a crucial crossroads for MANTRA DAO, as it navigates the challenges posed by the crash and works towards rebuilding its reputation and value.