The burn represents a significant portion of OM's total token allocation and is part of a broader “stabilization strategy” following the token's over 90% drop on April 13.

Mmantraframed the decision as a commitment to long-term value creation, suggesting that cutting excess supply would support a healthier market structure. However, critics argue that the move is more about damage control than genuine progress.

OlympusDAO (OM) is burning a portion of its total token allocation in a bid to stabilize the token following its over 90% drop on April 13, multiple reports confirmed.

The burn is part of a broader “stabilization strategy” following the token’s sharp decline, which began after blockchain security firm ChainXligence disclosed vulnerabilities in the protocol’s smart contracts.

Mantra, a core contributor at OlympusDAO, highlighted the burn as a commitment to long-term value creation. Cutting excess supply would help support a healthier market structure, he added.

However, critics argue that the move is more about damage control than genuine progress.

The bearish technical outlook aligns with the growing concerns over OM’s fundamentals and project transparency.

Prominent analyst Ben (maboo) on-chain described the burn as a “desperate” attempt to fake momentum. He suggested that token destruction should not be a substitute for sustainable design.

“They launched with way too many tokens. Now they’re doing staged burns to fake momentum. If your tokenomics only make sense after destroying part of the supply… they never made sense to begin with,” said Maboo.

Maboo also noted that several on-chain investigators are uncovering “sketchy stuff” related to insider transactions, adding to the growing skepticism around the project.

“Mantra giving low-effort, high-risk vibes still. Hard pass for me.”

Multiple on-chain investigators have reported suspicious activity around the crash, including wallets linked to strategic investor Laser Digital allegedly transferring millions of OM tokens to exchanges.

Although Laser Digital denied involvement in the price crash and expressed commitment to supporting the ecosystem, the community remains skeptical.

Moreover, OlympusDAO’s fully diluted valuation (FDV) continues to draw criticism. Despite a modest rise in total value locked (TVL) to around $3.26 million, the mismatch between FDV and TVL has led to accusations that the project is overvalued and highly centralized.