Mantra to Burn $160M in OM Tokens After 90% Price Crash

Mantra to Burn $160M in Tokens After OM Price Crash in Major Recovery Effort

Real-world asset (RWA) tokenization platform Mantra is taking bold action to restore investor confidence by proposing a massive token burn — up to 16.5% of its total OM supply, worth around $160 million.

The move follows a devastating 90% drop in OM token value on April 13, wiping out over $5 billion in market capitalization in a matter of hours. In a recent update, Mantra announced plans to burn up to 300 million OM tokens from its circulating supply of 1.8 billion. The goal: to enhance staking rewards and stabilize the ecosystem.

Token Burn Plan Led by Founder and Partners

Of the 300 million tokens slated for burning, 150 million — valued at roughly $80 million — belong to Mantra founder John Patrick Mullin. These tokens, originally part of the team’s allocation staked since the network’s October 2024 launch, are currently being unstaked. The rest will come from “ecosystem partners,” though details remain undisclosed.

The token burn will reduce the bonded ratio from 31.47% to 25.30%. The burn process is expected to conclude by April 29, when all tokens will be sent to the protocol’s burn address.

“The process of unstaking 150 million tokens from the Team and Core Contributor bucket has now begun,” the Mantra team confirmed.

OM Token Plunge Blamed on Liquidations

The OM token’s dramatic crash earlier this month has been attributed to “reckless liquidations” by major exchanges. The abrupt sell-offs triggered a cascade of forced liquidations, leading to the massive price drop and sparking panic across the community.

Tokenizing Real-World Assets with Major Partners

Mantra's core mission is to tokenize RWAs — like real estate, commodities, and infrastructure — allowing compliant access to tangible assets through blockchain. Its OM token is used for governance and transactions across the platform.

In January, Mantra announced a $1 billion tokenization deal with UAE-based DAMAC Group. The partnership includes tokenized real estate, data centers, and hospitality assets, helping drive OM’s massive 400% rally earlier in 2024.

Despite the burn announcement, OM’s price continues to struggle — down 3.3% over the past 24 hours — suggesting continued hesitation from investors.