The recent 90% drop in Mantra's OM token price led CEO John Patrick Mullin to a bold move: burning 150 million of his own tokens. Amid a divided community, could this action signal the initial steps towards rebuilding trust and rejuvenating the Mantra network?
In a bold move to restore confidence in the Mantra network, its founder and CEO, John Patrick Mullin, has initiated the process of withdrawing and burning 150 million of his own OM tokens. This decision comes after the token OM’s price plummeted by over 90% last April, shaking the community’s trust.
Mantra announced that the withdrawal and burning of the 150 million OM tokens held by Mullin would be completed by April 29. This initiative is part of an “OM token support plan” aimed at tightening supply and boosting the token’s value. Mantra is also in negotiations with “key ecosystem partners” to burn an additional 150 million tokens, bringing the total to 300 million OM tokens eliminated from circulation.
With this supply reduction, the total circulating OM tokens will decrease from 1.82 billion to 1.67 billion. Additionally, the amount of staked OM tokens will decrease by over 26%, dropping from 571.8 million to 421.8 million.
This decrease in the “staking rate” is expected to enable an increase in staking rewards, providing better incentives for token holders.
Mullin has described this initiative as a “first step to rebuild trust with the community, but far from the last.” Additionally, Mantra has introduced a tokenomics dashboard to enhance transparency and regain investors‘ trust following the recent price debacle.
Mullin’s decision to burn a significant portion of his own OM tokens demonstrates his personal commitment to the project and his efforts to get the Mantra network back on track. While the community is divided on the matter, this bold move could be the first step in a broader strategy to restore trust and revitalize the Mantra ecosystem. Only time will tell if this initiative will indeed help sustainably boost the value of the OM token.
At the time of writing, the OM token is trading at $0.52 and is up by 2.32% today.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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