Summary

Mantra, a platform for tokenizing real-world assets, is preparing to eliminate up to 16.5% of its OM token total supply, valued at around $160 million, to improve staking incentives after crucial talks with partners.

Key Points

• The plan includes burning 300 million OM tokens, with 150 million from founder John Patrick Mullin’s staked allocation, aiming to enhance staking rewards.
• This decision follows a drastic 90% drop in OM’s value, blamed on irresponsible liquidations by exchanges.
• Despite the announcement, OM price fell by 3.3%, reflecting decreased investor confidence.

Background

In early April, Mantra’s OM token experienced a significant value drop. The tokens involved in the burn are part of Mullin’s initial stake from the network’s launch in October 2024. It’s crucial to complete the burn by April 29, which will require an unstaking process.

Market Reaction

The OM token’s recent performance indicates a substantial investor skepticism, despite the intentions to boost the ecosystem post-crash.