MANTRA Leadership Announces Strategic Burn of 300 Million OM Tokens – Can the Price Reclaim $1?
In a significant move aimed at enhancing tokenomics, MANTRA’s CEO and core partners have revealed plans to permanently remove 300 million OM tokens from circulation. This deflationary strategy, executed through a verified burn mechanism, is designed to increase scarcity and potentially drive long-term value appreciation. Market analysts are now assessing whether this reduction in supply could catalyze a price recovery, with some speculating a return to the psychologically important $1 level. The decision reflects the project’s commitment to aligning incentives between stakeholders and fostering sustainable growth within the MANTRA ecosystem.
Understanding MANTRA’s Token Burn
Mantra, once one of the biggest players in the Real-World Assets (RWA) sector, suffered a dramatic collapse on April 13, with its token crashing over 90% in less than an hour and wiping out more than $5.5 billion in market capitalization.
The plunge followed a rapid surge earlier this year, when OM ROSE from $0.013 to over $6, pushing its fully diluted valuation to $11 billion. The crash was reportedly triggered by a $40 million token deposit into OKX by a wallet allegedly linked to the team, sparking fears of insider selling.
Panic spread quickly as rumors of undisclosed OTC deals, delayed airdrops, and excessive token supply concentration fueled mass liquidations across exchanges.
Despite co-founder John Patrick Mullin denying any wrongdoing and blaming centralized exchanges for forced closures, investors and analysts raised concerns about potential manipulation by market makers and CEXs, drawing comparisons to past collapses like Terra LUNA.
In an effort to rebuild trust, Mullin has announced the permanent burn of his 150 million OM team allocation. The tokens, originally staked at mainnet launch in October 2024, are now being unbonded and will be fully burned by April 29, reducing OM’s total supply from 1.82 billion to 1.67 billion.
This move also lowers the network’s staked amount by 150 million tokens, which could impact on-chain staking APR.
Additionally, MANTRA is in talks with partners to implement a second 150 million OM burn, potentially cutting the total supply by 300 million tokens.
OM Price Faces Critical Test as Token Burn Battles Lingering Market Doubt
Despite MANTRA’s ongoing token burn efforts, it’s still uncertain whether the move will be enough to fully restore investor confidence in OM.
From a technical standpoint, if momentum begins to recover, OM could test the immediate resistance at $0.59. A successful breakout at that level may pave the way for further gains toward $0.71, with additional key hurdles at $0.89 and $0.997 standing between the token and a return to the psychologically important $1 mark.
However, reclaiming these levels will likely require sustained buying interest and broader sentiment recovery across the Real-World Assets (RWA) sector.
On the downside, if the token burn fails to shift sentiment or if selling pressure continues, OM risks resuming its decline.
The first key support lies at $0.51, and a breakdown below that level could send the price further down to $0.469.
Given the scale of the recent crash and the lingering distrust among investors, the path to recovery remains fragile—OM now sits at a critical crossroads between a potential rebound and further erosion of its market value.
