Key Takeaways:
- Mantra CEO John Mullin pledged to burn 300 million OM team tokens ($236M value) to regain community trust after OM’s price crash.
- OM’s value plummeted from $6.30 to $0.52, wiping out over $5.5B in market cap; causes cited include aggressive liquidations and tokenomics volatility.
- A community vote may decide the final fate of the team tokens, while Mantra considers further burns and buybacks using its $109M ecosystem fund.
Mantra is taking dramatic action to rebuild trust after a severe drop in the value of its OM token.
On April 16, CEO John Mullin announced plans to burn the team’s entire 300 million OM token allocation—worth about $236 million at current prices—as a gesture of accountability.
The teams token allocation are actually vesting only starting in 2027, which is 30 months from mainnet launch (Oct. 24).
— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 15, 2025
I’m planning to burn all of my team tokens and when we turn it around the community and investors can decide if I have earned it back. 🫡🕉️ https://t.co/ZQR1H5xAqF
These tokens, locked until 2027 and set for staggered release through 2029, represent nearly 17% of OM’s total 1.78 billion supply.
The move follows a sharp market collapse on April 13, when OM’s price plunged from $6.30 to $0.52 in a single day, erasing over $5.5 billion in market value.
While some praised Mullin’s move as bold and community-first, others, like Crypto Banter’s Ran Neuner, warned it could demotivate the team by removing future incentives.
In response to mixed reactions, Mullin suggested a community vote to decide the tokens’ fate.
He also promised a transparent post-mortem on the crash and is considering using Mantra’s $109 million Ecosystem Fund for buybacks and additional burns to stabilize the price.
Mantra denied accusations of controlling 90% of OM’s supply or engaging in market manipulation, instead blaming the crash on aggressive liquidations and volatility.
Binance and OKX echoed this explanation.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: