Mantra (OM) Engages in Discussions to Burn Approximately 300 Million Tokens

Mantra (OM) is currently in negotiations to execute a significant token burn, potentially involving up to 300 million tokens. This strategic move aims to reduce the circulating supply, which could positively impact the token’s market value and scarcity. The burn process aligns with the project’s long-term economic model and commitment to sustainable growth. Further details regarding the timeline and execution mechanism are expected to be released by the Mantra team in the coming weeks.

Mantra burn will change staking APY 

The OM burn will initially decrease the total supply of tokens to 1.67B. Staked tokens will fall from 571.8M to 421.8M. This will decrease the bonded token ratio from 31.47% to 25.30%, leading to a higher APY for any remaining staked tokens. 

The higher APY may lead to more staking, which will remove OM from circulation. The biggest effect for OM, however, is expected to be the initial burn. 

OM is now closely watched for signs of a rebound. The token traded at around $0.58, recovering from lows of $0.50. Days after the crash, OM is showing no signs of a strong rally, as traders are still extremely cautious. 

OM is still trading NEAR its lows, with limited effect from the burn announcements. | Source: Coingecko

Open interest for OM is still low at $83M, with just 35% short sellers due to the risk of short-term rallies. The token still achieved over $500M in daily trading volumes due to legacy listings. OM is also used as a risky bet for a breakout and recovery to $1. 

The crash of OM arrived just as RWA tokens were recovering as a whole. The sector increased its total valuation to over $36.6B, driven by LINK, XLM, and ONDO. OM was an outlier among RWA tokens, sparking skepticism about its fair value.

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