Mantra announced that the CEO has started burning 150 million OM tokens.

John Patrick Mullin, the founder and CEO of Mantra, has initiated the process of unstaking 150 million OM tokens to prepare for sending them to a burn address (eater address). This move aims to restore the value of OM by tightening the supply.

On April 21, Mantra announced that the unstaking process had begun and is expected to be completed by April 29. After that, Mullin's OM will be transferred to the burn address and permanently removed from the circulating supply.

Mullin shared that this is "the first step in the journey to rebuild trust with the community, but there are many more steps to be taken."

Mantra also stated that they are discussing with "strategic partners in the ecosystem" to consider burning an additional 150 million OM, bringing the total burn amount to 300 million.

With the reduction of 150 million OM, the total supply of Mantra will decrease to 1.67 billion, while the amount of tokens being staked will decrease by more than 26%, from 571.8 million OM to 421.8 million OM.

Expected profits will also improve: "This strategic token burn will reduce the linking rate from 31.47% to 25.30%, resulting in an increase in staking APR," Mantra said.

This token burn initiative was implemented after the significant drop in OM price

Just two days after the price of OM plummeted by 90% on April 13, Mullin posted on X that he intends to burn all the staking tokens allocated to him since the mainnet genesis of the blockchain in October. These "team tokens" are expected to be unlocked starting in 2027.

He also conducted a poll on X regarding his token burn proposal, with alternatives such as extending the vesting period or unlocking tokens at key milestones — as a way to "gauge community opinion."

The poll has attracted nearly 9,000 votes at the time of writing, and some commenters criticize this as an effort to reverse the commitment to burn tokens.

The token burn is part of the "OM support plan" that Mantra announced after the price drop, including a buyback program. Mullin stated that the buyback program is also "going well."

Mantra has also released a tokenomics dashboard to enhance transparency as they work to regain the community's trust.

OM price chart | Source: TradingviewAt the time of writing, the price of OM is still down about 90% from the previous value of $6.3 in April, currently trading below $0.55.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

Mr. Teacher