Mantra team leader and CEO John Patrick Mullin has announced an OM crypto token burn process, targeting his allocation of 150 million OM tokens and a similar amount belonging to key ecosystem partners to bolster transparency and rebuild trust within the community.
According to a press statement by the Mantra team, the OM crypto token burn procedure is meant to permanently remove the 300 million OM tokens from circulation as part of a broader scheme to reaffirm the company’s mission of creating a decentralized, inclusive financial ecosystem driven by tokenization. The move is the aftermath of the drama that saw the Mantra OM token crash over 90%, losing $6 billion in market cap valuation.
Sent To A Burn Address and Removed From Circulation
Despite the Mantra team’s announcement on the massive reduction of supply through the OM crypto token burn plan, on-chain data shows that the price of the OM token took a negative sentiment. According to data, the price slipped by a further 5% in 24 hours to trade at $0.5437 by writing, bringing the cumulative decline to over 91% in the last 30 days.
The company’s statement indicates that the OM crypto token burn process began with the unstacking of over 150 million OM tokens from the Core Contributor and Team allocation. The tokens were staked at Mainnet Genesis last October to support network security.
The company offered a statement showing transaction hashes for verification to prove their assertion. The unstacking period will end on April 29, 2025, when the entire unstaked token will be sent to a burn address and removed from circulation.
Accusations of a Rug Pull
The OM crypto token burn aims to decrease the number of staked tokens from 571.8 million to 421.8 million OM. The goal is to reduce Mantra Chain’s bonded ratio from 31.47% to 25.30%, potentially triggering a rise in onchain staking annual percentage rates (APRs).
The decision to release a report to confirm the final burn reflects a growing trend among tokenized projects to build credibility and incentivize long-term participation through transparent and deflationary supply mechanics.
The Mantra team has endured an agonizing eight days following a flash crash on April 13, 2025, that saw the token slip over 90% from $6.32 to $0.5, losing nearly $6 billion in market capitalization.
There were immediate accusations of a rug pull since suspicious activities had been spotted onchain a few days before the crash. Nonetheless, Mullin and the rest of the Mantra team have refuted the rug pull claims, stating that the crash was caused by aggressive liquidation and hinting that major centralized exchanges were responsible.
Conclusion
The OM crypto token burn is aimed at impacting the staking configuration within the network and potentially stabilizing the project’s tokenomics. The decrease in the bonded ratio of the network from 31.47% to 25.30% will be significant to stakers who bond their OM. At the time of writing, OM was trading at around $0.58, nearly 10% up from the lows following the fallout of the flash crash eight days ago.
Frequently Asked Questions (FAQs)
What happened to the OM token?
The OM token’s price dropped sharply by approximately 90%. This crash resulted in a significant loss for investors, as market capitalization dropped from over $6 billion to $681 million.
What are some of the reasons that could have caused the crash?
Market manipulation, centralized exchange issues, flawed tokenomics, and liquidity problems are among the probable reasons for such crashes.
What is the current state of the OM token?
The OM token is recovering from its initial crash but remains well below its pre-crash price.
Appendix: Glossary to Key Terms
Token burn: The act of sending a token to an inaccessible address. Wallet addresses used for burning cryptocurrency are called “burner,” “eater,” or “null” addresses.
Staking: The practice of locking your digital tokens to a blockchain network to earn rewards
Rug pull: A scenario in cryptocurrency where developers abandon a project after raising assets, leaving participants with worthless tokens.
Reference
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