Mantra CEO proposes burning $236M in tokens to rebuild trust

Mantra (CRYPTO:OM) CEO John Mullin has announced plans to burn 300 million locked OM tokens allocated to the team, valued at approximately $236 million, in an effort to regain community trust following the token’s dramatic collapse on April 13.

The OM token, which plummeted from $6.30 to $0.52 within hours, lost over 90% of its value, wiping out $5.5 billion in market capitalisation.

“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,” Mullin shared his intentions on April 16 via X.

The tokens, representing 16.88% of OM’s total supply, were originally scheduled for release between 2027 and 2029.

While many community members welcomed the gesture as a step toward accountability, others raised concerns about its potential long-term impact on team motivation.

Ran Neuner, founder of Crypto Banter, commented that burning the tokens could undermine incentives for the team to continue building the platform.

Mullin suggested that a decentralised vote could ultimately determine whether the token burn proceeds.

The crash has sparked widespread scrutiny of Mantra’s operations and tokenomics.

Critics have alleged insider trading and market manipulation due to significant deposits of OM tokens into exchanges shortly before the collapse.

However, Mullin and the Mantra team have denied these claims, attributing the crash to “reckless liquidations” initiated by centralised exchanges during low-liquidity trading hours.

To stabilise OM’s price and support recovery efforts, Mullin outlined plans to leverage the $109 million Mantra Ecosystem Fund for potential token buybacks and burns.

A post-mortem report detailing the events leading up to the crash is also expected soon.

Mantra’s token distribution has come under scrutiny for its high level of centralisation, with over 85% of supply reportedly controlled by insiders.

At the time of reporting, the MANTRA (OM) price was $0.7579.