- The CEO of Mantra will burn 150 million OM tokens to restore trust after a 90% price collapse.
- 81% of the community supported the burn proposal.
- Although some are optimistic about the burn’s impact, OM’s price remains pressured around $0.50.
After Mantra’s token plunged roughly 90% on April 13, 2025, amid a wave of liquidations, founder and CEO John Patrick Mullin announced a decisive plan to burn his personal allocation of 150 million OM tokens. The move aims to rebuild confidence in the layer-1 blockchain focused on tokenizing real-world assets. The crash on April 13 erased more than $5 billion in market capitalization within hours, so Mullin’s commitment to destroy tokens valued at roughly $82 million at current prices surprised and captured the attention of the crypto community.
Community overwhelmingly backs Mullin’s proposal
An X poll conducted by John Patrick Mullin drew over 8,900 votes, with more than 81% supporting the immediate burn of his tokens. That strong approval reflects the community’s desire for decisive action to help stabilize OM. Under the proposed plan, tokens currently not yet vested will be sent to the network’s burn address by April 29, 2025. The procedure is designed to provide transparency and alignment with protocol rules. Mantra is also discussing a larger coordinated burn with ecosystem partners, targeting an additional 150 million OM tokens. If carried out, the total would be 300 million OM, or approximately 16.5% of the 1.817 billion total supply. Such a reduction could materially alter the token’s supply dynamics. If successful, the total supply would fall to about 1.517 billion OM tokens.
Potential impact of the proposed Mantra token burn
The burn is expected to improve Mantra’s tokenomics by lowering the vesting ratio from 31.47% to 25.30% and reducing staked tokens from 571.8 million to 421.8 million. This adjustment would increase APRs for remaining stakers, potentially encouraging holders to lock up more OM. Reduced selling pressure could help stabilize price action. Despite the announcement, OM’s price showed little change, trading near $0.5396 — up only 0.1% in the last 24 hours. Following the burn announcement, the token briefly rose to an intraday high of $0.5585 before retreating toward the $0.50 range. Ongoing unstaking activity may be limiting a stronger price reaction, while market skepticism persists after the shock of the crash. Roughly 4 million OM tokens unlock every few weeks, and with about 45% of the supply still subject to vesting or other restrictions, selling pressure could offset some benefits of the burn. The April 13 crash also triggered accusations of foul play: community members alleged a coordinated sell-off by insiders, claims that Mullin and investor Laser Digital have forcefully denied.
Can Mantra’s price recover after the burn?
OM is currently trying to reclaim $0.55 amid ongoing unlocks and the risk of further liquidations. Market sentiment remains cautious, and the psychological lift from a burn may not fully materialize until the process is complete and transparent. Over the longer term, however, the burn could set the stage for recovery. A 16.5% supply reduction is meaningful, and when paired with stronger staking incentives, it can reduce circulating supply and help rebalance the supply-demand curve in OM’s favor, which could support higher prices if demand stabilizes or grows.