- MANTRA burns 150 million OM tokens to rebuild trust after a 90% market crash.
- Token burn reduces the total supply and may increase staking rewards.
- MANTRA plans to burn 300 million OM tokens, with complete transparency via on-chain tracking.
MANTRA, a Decentralised Finance (DeFi) protocol, has officially kicked off burning of 150 million OM tokens, carried out from Team and Core Contributor allocations, as part of a broader initiative aimed at rebuilding community trust.
An official post by the company states that the tokens’ unstacking is moving forward and is expected to end by April 29. Once complete, the tokens will be sent to a burn address and permanently deleted from the chain.
MANTRA’s Burn Initiative Aims to Restore Trust
It occurs after OM’s market value has taken a dramatic downturn, plummeting more than 90% in a day in mid-April. MANTRA said that their burn initiative is intended to restore confidence in the project and improve the platform’s tokenomics.
These were tokens staked to support network security during the protocol’s main [network] launch, scheduled for October 2024. After burning, MANTRA’s total supply will decrease from 1.82 billion OM to 1.67 billion OM.
Therefore, it’s expected that the number of staked tokens will decline from 571.8 million to 421.8 million OM, thereby reducing the bonded ratio from 31.47% to 25.30%. The expected result will be this reduced ratio, where staking rewards on chain for participants will increase.
Total Burned Tokens Could Reach 300 Million OM
Mullin said last week that he was forfeiting all the team-held 772,081 tokens on Fluxtra as part of the burn initiative for 300 million of a total of 150 million OM tokens. He has confirmed that he will be burning his entire allocation of 150 million OM to signify ‘leaving the building’ in a wider move that involves 300 million OM in total.
MANTRA has also shown, alongside the team allocation burn, that it is in close contact with ecosystem partners scheduled to burn a further 150 million OM tokens. If these discussions succeed, the total amount of OM taken off the circulation will total up to 300 million tokens.
The protocol provides transaction hashes on chain so anyone can see how a burn is performed. Once the operation is finalized, MANTRA has assured that the burn will be publicly verified in detail.
