Mantra founder's 150m OM burning proposal receives 81% support: Can he trigger a recovery?
Mantra founder's 150m OM burning proposal receives 81% support: Can he trigger a recovery?
- The CEO of Mantra plans the burning of 150 million OM token in order to rebuild trust after 90% price drop.
- 81% of the community support the combustion proposal.
- While some are optimistic about the effects of the token combustion, the OM Prize continues to fight at $ 0.50
After the dramatic drop in price of 90% at Mantra on April 13, 2025, caused by negligent liquidations, the founder and CEO of Mantra, John Patrick Mulllin, announced a bold plan to burn his personal allocation of 150 million om-token.
This measure aims to restore the trust in the Layer 1 Blockchain, which is geared towards the tokenization of real assets.
Although the crash extinguished over $ 5 billion in market capitalization on April 13, Mullin's commitment to burn token worth around $ 82 million, the crypto community amazed.
community supports Mullin's proposal overwhelming
This strong support reflects the community's wish for determined action to enable the OM-token to relax.
According to the combustion proposal, the currently unpecified tokens will be sent to the network's combustion address by April 29, 2025.
The process ensures transparency and compliance with the protocol rules.
mantra also checks a larger combustion campaign with ecosystem partners, with discussions being held to burn an additional 150 million OM token.
This would include a total of 300 million tokens, which corresponds to 16.5% of the total offer of 1.817 billion tokens.
Such a reduction could significantly change the dynamics of the token.
If this is successful, the entire range of OM-token would decrease to around 1.517 billion.
Potential effects of the proposed token burning of mantra
The combustion is expected to have positive effects on the Mantra tokenomics.
It will reduce the bound ratio of 31.47% to 25.30%. The clocked tokens will drop from 571.8 million to 421.8 million.
This adaptation will increase the staking APR for the remaining tokens.
Higher staking rewards could incorporate the owners to block their OM tokens. The reduced sales pressure could support price stability.
Nevertheless, the price of OM remains stagnating despite the announcement and is currently about $ 0.5396, which has only increased by 0.1% in the past 24 hours.
After the announcement of the burn, the token experienced a slight increase in a daily high of $ 0.5585 before quickly falling back into the range of $ 0.50
Probably the ongoing cancellation process could delay a significant price movement, while the market remains skeptical after the shock of the crash.
About 4 million OM tokens are released every few weeks, and since 45% of the offer is still blocked, sales pressure could counteract the advantages of burning.
The crash on April 13th aroused suspicion of manipulation, since members of the community accused the Mantra team of orchestrating a wave of sales, which Mullin and the investor laser rejected.
can the price of mantra recover in the event of a burn?
At the moment, the price of OM has difficulty exceeding the $ 0.55 mark, especially in view of the ongoing shares and potential liquidations.
In view of this, the feeling of the market remains careful, and the psychological effects of the combustion may only be visible when it is completed.
In the long -term perspective, however, the combustion could create a basis for growth.
A reduction of the offer by 16.5% is significant, and in combination with staking incentives, this could tighten the offer in circulation, which could lead to a normal offer request curve that could result in a price increase.
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