Mullin announced he will burn 150 million OM tokens—his entire allocation—worth approximately $82 million.
The move aims to show his long-term commitment to building the real-world asset (RWA) Layer 1 blockchain. Also, to prove to investors that he’s putting the network ahead of personal gain.
Token Burn Follows $5B Crash to Restore Confidence
This announcement follows an April 13 crash that saw OM lose over 90% of its value in just hours. The incident wiped out billions in market cap and raised serious concerns about stability and transparency. While investor Laser Digital denied any involvement, the MANTRA team blamed “reckless liquidations” for the rapid sell-off.
📉CRASH: Mantra OM crashed over 90% in 1 hour and went from a 5.9bn market cap to $500m.
Many are speculating but the project claims it was triggered by “forced liquidations”.
What do you think? pic.twitter.com/G72uqYGMvX
— Coin Bureau (@coinbureau) April 14, 2025
The token burn is more than symbolic—it’s strategic. By permanently removing 150 million OM tokens from circulation, Mullin is effectively reducing the supply, which could increase scarcity and support long-term value. MANTRA says it’s working with key partners to expand the burn to 300 million tokens, about 16.5% of the network’s 1.8 billion total supply.
This could lower the bonded ratio—an indicator of how much of the token supply is staked— from 31.47% to 25.30%. A lower bonded ratio often translates to higher staking rewards (APR), which could help bring more users back into the fold. In a statement, the team said the burn would “create long-term value for OM holders” and demonstrate “unwavering focus” on growing the network.
@jp_mullin888 CEO and Founder is burning his allocation of team tokens. For more and why, read on.https://t.co/Ttll5gPj3S pic.twitter.com/QpmqkNB6Jy
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 21, 2025
Transparency and Trust in a Volatile Market
In the aftermath of the crash, transparency has become a central theme. Mullin posted on X (formerly Twitter), “There were no $OM sales by the MANTRA team during this period of market distress,” asserting that internal actors didn’t trigger the sell-off. He added that centralized exchange partners are expected to release more information soon to help clarify what happened.
The MANTRA situation offers a real-world example of how token supply management and leadership accountability can impact a project’s recovery. Token burns, while not new, have become an increasingly popular tool to manage inflation, stabilize prices, and boost community confidence.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
