Mantra (OM) Price Holds Above $0.51 as CEO Begins Massive 150 Million Token Burn to Restore Trust

Mantra (OM), a real-world asset (RWA) focused Layer 1 blockchain, is implementing an aggressive token burn strategy in an attempt to restore

Real-world asset (RWA) focused Layer 1 blockchain Mantra (OM) saw its token price slip above the $0.51 mark on Thursday, showing little response to the project’s latest efforts to restore trust after one of the most dramatic crashes in recent crypto history.

At the time of writing, OM had slid by over 1% in the past 24 hours, suggesting that the market remains largely skeptical despite the project’s recovery attempts.

Earlier in the week, Mantra creator and CEO John Patrick Mullin began the process of unstaking 150 million of his OM tokens- which currently translates to about $82 million. These tokens will be permanently removed from circulation when supplied to a burn address by April 29.

The project fits this move inside a broader scheme where the corporation is in talks with “key ecosystem partners” to arrange an additional 150 million OM token burn- hence burning a total of 300 million tokens.

“This is a first step in rebuilding trust with the community, but far from the last,” Mullin said, emphasizing his commitment to the project’s future.

The token burn will reduce Mantra’s total token supply from 1.82 billion to 1.67 billion OM, while the amount of staked tokens will be slashed by over 26%, decreasing from 551.8 million to 421.8 million. This smart move aims to improve the platform’s economic structure by lowering the bonded ratio from 31.47% to 25.30%, consequently increasing staking returns for users.

Mantra (OM) Price Prediction: Can OM Token Recover?

After the token burn news, OM’s price action continues to be volatile. Following the burn announcement, the coin saw a 4% rise momentarily but has since begun descending.

Technically, OM is testing crucial support at the $0.51 level. Should this level fail to hold, the next significant support zone lies around $0.48, with further potential negative impact at $0.46. For any substantial comeback, OM would need to reclaim the $0.55 level with strong momentum before encountering resistance at $0.59, $0.71, and ultimately the psychologically significant $1 mark.

On OM’s chances for recovery, market analysts remain divided. While the token burn should theoretically boost value by decreasing supply, investor sentiment is still heavily influenced by the remaining questions about centralized token concentration, poor governance, and the scope of the recent meltdown.

Apart from the token burn, Mantra deployed a real-time tokenomics dashboard on April 19 to increase transparency by displaying OM’s EVM and mainnet supply, wallet holdings, and on-chain stats. The team promises to apply “additional features” to meet investor needs for clarification following the disaster.

Some observers compare OM’s predicament to earlier calamities like Terra LUNA and question whether the burn is merely symbolic or a genuine strategic action intended to reconstruct the enterprise. Despite the setback, early investors are still expected to make gains, whereas those who entered during the recent bull run are facing substantial losses.

The broader crypto market shows signs of optimism as Bitcoin continues accelerating toward the $90,000. However, OM’s recovery depends on more than just favorable macro conditions; it also hinges on persistent positive developments, rebuilt investor confidence, and perhaps more fundamental improvements beyond tokenistic adjustments.

The next few weeks will determine whether Mantra can rebuild trust and stabilize its token value or if the project will join the long list of promising crypto startups that ultimately failed to recover from a catastrophic market event.