John Patrick Mullin, founder and CEO of real-world asset Layer 1 blockchain MANTRA, said he will burn his 150 million OM tokens, worth about $82 million, to help rebuild trust in the network. The decision comes after OM’s value dropped by more than 90% on April 13, reducing market capitalization by more than $5 billion.
The sudden drop of OM tokens happened in a matter of hours and shook the community. In response, Mullin said the token burn is intended to show his “unwavering focus” on building the project and restoring trust in the ecosystem. The tokens are currently staked and will be unstaked until April 29, after which they will be sent to the network’s burn address.
Burning tokens means removing them from circulation forever, which could help reduce supply and potentially improve value for remaining holders.
“There were no $OM sales made by the MANTRA team during this period of market crisis,” Mullin said on X, denying that the team had anything to do with the token’s fall.
MANTRA also announced that it is in talks with partners to possibly increase the number of burned tokens to 300 million, which would be about 16.5% of the total 1.8 billion OM tokens. The team says the move will reduce the bonded ratio from 31.47% to 25.30%, which could lead to better staking rewards for users.
The company blamed “reckless liquidations” for the crash, while Ledger Digital, an investor in the project, said it had no involvement in the incident. Mullin also posted a poll on X asking users if they support the token burn plan. More than 8,000 people voted, with more than 81% voting in favor of burning the tokens immediately.
After the announcement, the price of OM rose for a while, then fell again. According to the latest information from CoinMarketCap, it has fallen by 4% in the last 24 hours.
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