In a significant move aimed at rebuilding market confidence, Decentralized Finance (DeFi) project MANTRA is executing a large-scale crypto token burn, targeting its native $OM asset.
The initiative involves the permanent removal of 150 million $OM tokens initially allocated to the team and core contributors. This process, involving the unstaking of the tokens, commenced recently and is slated for completion by April 29. Following unstaking, the assets will be transferred to a dead-end burn address, effectively erasing them from the circulating supply.
This strategic reduction comes after the $OM token’s value experienced a sharp decline, dropping over 90% within a 24-hour period in mid-April. The burn is presented as a core component of MANTRA’s strategy to mend community relations and strengthen the project’s underlying tokenomics following the volatility.
These specific tokens were originally locked in staking pools during the mainnet deployment in October 2024, intended to bolster initial network security. Removing them will decrease the total $OM supply from 1.82 billion to 1.67 billion.
Consequently, the quantity of staked $OM will fall from approximately 571.8 million to 421.8 million. This change reduces the network’s bonded ratio—the proportion of total supply currently staked—from 31.47% down to 25.30%. A lower bonded ratio often translates to higher annual percentage yields (APY) for remaining stakers, potentially incentivizing network participation.
Potential 300 Million Token Reduction
John Patrick Mullin, the project’s CEO and Founder, is personally contributing his full 150 million $OM token allocation to the burn, reinforcing a commitment made amidst the recent market turmoil. This action aligns with broader efforts to address liquidity concerns and market stability.
MANTRA further indicated ongoing discussions with ecosystem partners to potentially burn an additional 150 million $OM tokens. Should these negotiations succeed, the total quantity of destroyed tokens would reach 300 million.
The project assures that the burning process can be monitored transparently via on-chain transaction data. Complete verification details are expected to be released publicly once the token destruction is finalized.