The CEO of Mantra is committed to burning Tokens to regain the trust of investors after the collapse of OM.

The CEO of Mantra, John Patrick Mullin, has proposed burning his allocated OM tokens in a move to restore investor confidence after the native token of this protocol fell sharply. Mullin stated that his number of tokens, part of the 300 million OM allocation reserved for the team, will be restricted until April 2027. Token Burn In a public statement posted on X on April 15, Mullin pledged to forgo his future allocation and stated that the community could decide whether he could earn that portion back when the project recovers. He revealed that he currently holds about 772,000 OM tokens, less than 1% of the more than 80 million OM tokens in circulation as of April 15, according to data from Tokenomist. Mullin has allocated his tokens into the Fluxtra liquidity staking protocol. Despite the commitment and the disclosure of the number of tokens he holds, Mullin still did not reveal the number of OM tokens he holds and stated that he will wait until the token burn program is ready to share his portion of the tokens. The OM token, the foundation of the Mantra blockchain, lost more than 90% of its value on April 13, dropping from around $6.30 to less than $0.50 in just one day The collapse wiped out about $5.5 billion from the company's market capitalization, falling from around $6 billion to $530 million. Although OM has recovered to $0.81 with a market capitalization of nearly $800 million, it is still far below its previous level. Mantra is a layer 1 blockchain built using Cosmos SDK, focusing on tokenizing real-world assets and integrating regulatory compliance into its protocol. This platform has recently been licensed as a Virtual Asset Service Provider by the Dubai Virtual Asset Regulatory Authority (VARA), positioning the platform to develop in the regulated digital asset market. Bold Liquidation Mullin believes that this collapse was due to centralized exchanges liquidating abruptly during periods of low liquidity trading, causing rapid selling pressure. He denies that any team members or investors sold tokens, emphasizing that all allocations remain locked according to the public transfer schedule. Blockchain observers have raised the possibility of insider activities or wallet breaches, citing suspicious movements of funds. More than 70 million dollars in OM is said to have been transferred to exchanges through a single intermediary wallet before the collapse, drawing comparisons to the collapse of the Terra ecosystem in 2022. Mullin said the group is investigating and plans to release details about the centralized exchange's involvement. He reiterated that Mantra's tokenomics are intact and verifiable through on-chain data.