MANTRA to burn 300m $OM tokens in effort to rebuild trust

DeFi protocol MANTRA has begun the process of burning 150 million OM tokens from its team and core contributor allocation.

The unstaking of these tokens is now underway and expected to be completed by April 29, at which point the tokens will be sent to a designated burn address and permanently removed from circulation, according to a company post. 

This initiative is designed to restore community trust and improve the platform’s economic structure after its value plummeted by over 90% in the last 24 hours in mid April. 

The tokens were originally staked at the October 2024 mainnet launch to help bootstrap network security. Their removal will reduce MANTRA’s (OM) total token supply from 1.82 billion OM to 1.67 billion OM. 

As a result, the number of staked tokens will drop from 571.8 million to 421.8 million OM, reducing the bonded ratio from 31.47% to 25.30%. This decrease in the bonded ratio is expected to raise on-chain staking rewards.

300 million total tokens

CEO and Founder John Patrick Mullin, who previously staked 772,081 team tokens on Fluxtra, confirmed he is also burning his full allocation of 150 million OM. This follows his public commitment last week to relinquish all team-held tokens as part of the broader burn initiative.

In addition to the team burn, MANTRA says it is in active discussions with ecosystem partners to coordinate an additional 150 million OM token burn. If successful, the total amount burned will reach 300 million OM.

The burn can be tracked on-chain through transaction hashes provided by MANTRA. Once finalized, full verification of the burn will be made publicly available, according to the project.