After $5B Crash, MANTRA Founder Burns 150M OM Tokens to Restore Confidence

Mullin announced he will burn 150 million OM tokens—his entire allocation—worth approximately $82 million.

After an April 13 crash that saw Mantra Chain's OM token plummet 90% in just hours, wiping out billions in market cap, the network's founders are announcing a new initiative.

The founders at MANTRA Chain are planning to burn 150 million OM tokens—his entire allocation—worth approximately $82 million. The move, announced Monday, 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.

The token burn 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.

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.

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.

The move comes as the crypto market continues to struggle with volatility and a lack of trust. With billions of dollars in value lost and investors burning through their risk tolerance, the need for transparency and accountability has never been greater.

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.

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