Mantra (OM) founder hints at token burn program to revive the project’s reputation

Source Cryptopolitan

John Mullin, the CEO of Mantra (OM) hinted at an expanded token burn program. The move aims to rebuild the project’s reputation and the value of the native token. 

John Mullin, the CEO of Mantra (OM), announced he is considering a wider token burn platform to cause deflation and revive the token’s value. Mullin clarified he is ready to burn his own portion of the team token allocation. 

In the initial burn, the rest of the team will retain their tokens. The project’s core contributors hold 16.6% of the supply. The biggest weight comes from legacy OM, currently vested in a special wallet. Mullin announced the terms of the burn are to be negotiated, but he will strive for a maximum amount. 

OM has a circulating supply above 1.8B tokens and no cap on the total supply. The burn will have to tweak the tokenomics in a way to reassure holders of the value of OM. The token is mostly used for staking, as well as to secure the positions of the Mantra chain’s 29 validators. 

After the market crash, Mantra DAO has not moved any OM to the market. Currently, Mantra DAO holds 95.52M OM, after moving 23.54K tokens for staking. 

OM has still not recovered from its 90% collapse and trades at a lower range of $0.77. Trading volumes are picking up again, at $1.7B in 24 hours, following a previous stagnation at $69M in 24 hours. The heightened trading activity after the price drop suggests some confidence is left for MANTRA, and buyers may be hoping for a recovery. 

The team has also not given any signs of shutting down the project. The OM token fell after on-chain signs of insider selling. Early investors sold a relatively small amount of OM, but enough to cause a panic and drive centralized exchanges to quickly close positions. 

Can Mantra rebuild OM’s value?

After the crash, OM trades at $1.4B in total valuation. Some of the price predictions suggest the token may return to a valuation of $2B. 

Mantra (OM) founder hints at token burn program to revive the project's reputation
OM hopes for a recovery to $2, as the project claims the price crash was not a deliberate rug pull. | Source: Coingecko

The most recent price moves also sparked hopes of OM returning to $2. Mantra Chain’s team is still preparing for a detailed report on why OM crashed, and how to avoid similar events in the future. What is known is that the team and early investors sold $43M OM during a low-liquidity weekend. Unlike previous periods, there was no effort to defend the price or inject additional liquidity. 

Currently, Mullin has not given additional evidence of burning tokens or a deadline for changing the project’s tokenomics. The main claim of Mantra’s team is that the crash is nothing like the crisis of Terra (LUNA), as Mantra did not have a stablecoin or any other way to boost value. The OM crash was simply due to a lack of liquidity, which led to doubts that the price was not organic and was most likely reflecting the effect of market makers. 

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
placeholder
Avalanche Price Forecast: AVAX eyes $30 as FIFA, VanEck back blockchain ecosystemAvalanche (AVAX) is gaining bullish momentum, extending gains on Friday, trading at $25.74 as investor confidence grows on the back of two major developments.
Author  FXStreet
May 23, Fri
Avalanche (AVAX) is gaining bullish momentum, extending gains on Friday, trading at $25.74 as investor confidence grows on the back of two major developments.
placeholder
Gold edges higher after Trump’s bill boosts bond market uncertaintyGold (XAU/USD) price extends its weekly gains, trading near $3,330 at the time of writing on Friday, up nearly 1% on the day, on a new tailwind for the safe haven precious metal.
Author  FXStreet
May 23, Fri
Gold (XAU/USD) price extends its weekly gains, trading near $3,330 at the time of writing on Friday, up nearly 1% on the day, on a new tailwind for the safe haven precious metal.
goTop
quote