Mantra to Burn $300 Million in Tokens, Putting OM Price in the Spotlight

Jakarta, Pintu News – The crypto market was recently shocked by an announcement from MANTRA of a significant OM token burn plan. A total of 150 million OM tokens will be removed from circulation, with additional plans to burn another 150 million.

While this should be good news as it reduces the number of tokens in circulation, OM’s token price has instead seen a drop of around 5% in the last 24 hours, now sitting at $0.5437. John Patrick Mullin, CEO and Founder of MANTRA, has taken a big step by deciding to burn his entire allocation of 150 million team tokens.

This token burning process has begun with the unstaking of Team allocations and Core Contributors. MANTRA is committed to running this process transparently and has provided technical details for verification by the community.

Plan to Burn an Additional 150 Million OM Tokens

MANTRA didn’t just stop at 150 million tokens. Discussions are ongoing with key ecosystem partners to execute an additional burn of 150 million OM tokens. This will increase the total tokens burned to 300 million OM, reducing the total supply from 1.82 billion OM to 1.67 billion OM, or a decrease of approximately 8.2%.

This token burn is expected to significantly affect the staking economy. With the burn, the number of staked tokens will decrease to 421.8 million OM, and the tied-up ratio will drop from 31.47% to 25.30%. This decrease in the tied-up ratio is expected to result in a greater increase in the Annual Percentage Rate (APR) of staking.

Read also: Ark Invest expands crypto portfolio, Solana becomes a target through 3iQ ETF!

Long-term Impact of Token Burning on OM Economy

This massive token burn is expected to have a long-term impact on the value and stability of OM. By reducing the number of tokens in circulation, inflationary pressure on the tokens could be reduced, which in theory should increase the value of the remaining tokens.

However, the negative market reaction suggests that investors may have other concerns, such as liquidity and trust in MANTRA’s management.

In addition, token burning could also influence market perception of MANTRA as an entity that is proactive in managing their token supply. This could be a positive signal for long-term investors looking for projects with good supply management and a commitment to value stability and growth.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. OM Price Reacts as Mantra Announces Major $300M Token Burn Update. Accessed on April 23, 2025
• Featured Image: Fast Company