Mantra CEO rebuilds trust by burning 150m OM tokens after a 90% Mantra price crash. 81% of the community support the burn proposal. Some are optimistic about the impact of Token Burn, but the OM price continues to struggle at $0.50.
After a dramatic 90% Mantra Price Crash on April 13, 2025, as a result of a reckless liquidation, the founder and CEO of Mantra John Patrick Marin has announced a bold plan to burn personal allocations of 150 million om tokens.
The move aims to rebuild trust in the Layer 1 blockchain, focusing on real asset tokenization.
The April 13 crash was wiped out at a market capitalization of just over $5 billion, but Marine's commitment to burning tokens of around $82 million at its current price surprised the crypto community.
The community is overwhelmingly supportive of Marine's proposal.
The X poll conducted by John Patrick Marin has received over 8,900 votes, with over 81% of respondents supporting immediate burning of tokens.
This strong support reflects the community's desire for critical actions that help OM tokens recover.
Burn's proposal indicates that any tokens that are currently unclear will be sent to the network's burn address by April 29, 2025.
This process ensures transparency and compliance with protocol rules.
Mantra is also investigating greater burns with ecosystem partners, and there is an ongoing discussion to incinerate another 150 million OM tokens.
This brings a total of 300 million tokens to be burned or 16.5% of the total supply.
Such reductions could significantly alter token supply dynamics.
If successful, the total OM token supply will drop to approximately 1.517 billion OKEN.
Potential impacts of the proposed mantra token burn
Burns are expected to have a positive effect on mantra talknomics.
The binding ratio decreases from 31.47% to 25.30%. Staked tokens will decrease from 571.8 million to 421.8 million.
This adjustment will boost the staking APR for the remaining tokens.
A higher staking reward may encourage owners to lock the OM. A lower sales pressure could support price stability.
However, despite the announcement, OM prices have stagnated, currently trading at around $0.5396, an increase of just 0.1% over the past 24 hours.
Following the announcement of the burn, the token quickly reverted to the $0.50 range after a slight increase to an intraday high of $0.5585.
Perhaps the ongoing staking process could slow down a significant price movement, while market skepticism persists after the crash shock.
With around 4 million OM tokens unlock every few weeks and 45% of the supply still locks, sales pressure could counter the benefits of burns.
The April 13 crash caused suspicions of foul play, with community members accusing the mantra team of orchestrating the sellouts, claiming Marine and investor Laser Digital firmly denying it.
Can the price of a mantra be healed in the event of a burn?
Currently, the OM price is struggling to exceed $0.55. In particular, continuous unlocking and potential liquidation are looming.
This will make market sentiment cautious and the psychological impact of burns may not be fully realized until it is fully complete.
However, in the long run, burns can lay the foundation for growth.
A 16.5% supply cut is significantly reduced and, coupled with staking incentives, could tighten circulating supply and lead to a normal supply and demand curve that could lead to price increases.
