MANTRA DAO’s price took a hit following the announcement of a new token burn plan. The team revealed that they would be removing 150 million OM tokens permanently from circulation. CEO and Founder John Patrick Mullin also pledged to burn his entire 150 million allocation of team tokens. Despite these measures to reduce the token supply, the price of OM decreased by 5% in the last 24 hours, trading at $0.5437. This decline comes after a steep drop of 91% over the past 30 days. However, CoinGape analysis suggests a potential rebound of 50% from its lows.
The token burn process has already begun with the unstaking of 150 million OM tokens from the Team and Core Contributor allocation. These tokens were initially staked at mainnet genesis in October 2024 to support network security. The company has provided transaction hashes for verification, and the unstaking period is expected to complete on April 29, 2025. Once unstaked, the OM tokens will be sent to a burn address and permanently removed from circulation.
MANTRA has initiated a transparent process for the token burn, providing specific technical details for community verification at each step. The unstaking of 150 million tokens from the Team and Core Contributor allocation can be tracked through three transaction hashes. Additionally, the company is in talks with key ecosystem partners to implement an additional 150 million OM token burn, doubling the impact of the initial burn to a total of 300 million tokens removed from circulation.
The token burn will have significant effects on MANTRA’s tokenomics and staking economics. The reduction of 150 million OM tokens will decrease the total supply from 1.82 billion OM to 1.67 billion OM, an 8.2% reduction in the overall token count. Furthermore, this removal of tokens from the staked supply will reduce the staked tokens to 421.8 million OM, lowering the network’s bonded ratio from 31.47% to 25.30%. This adjustment will lead to an increase in the staking APR, benefiting stakers who bond their OM tokens.
In the wake of the token burn announcement and the subsequent price drop, MANTRA’s crash garnered attention in the crypto community. Binance, a prominent crypto exchange, also addressed the token’s decline. The company remains committed to implementing the token burn plan and providing complete verification to users once the burn transaction is executed. With the potential for an additional 150 million token burn, MANTRA is taking steps to strengthen its tokenomics and staking economics for the benefit of its community and investors.
