Mantra, the platform focused on real-world asset tokenization, is set to burn a substantial number of OM tokens to improve staking rewards following a sharp decline in the token's value. The decision involves incinerating 300 million OM tokens, with half of them being part of the initial allocation to John Patrick Mullin's team when the network commenced in October 2024.

The move to burn these tokens aims to counterbalance a drastic 90% drop in OM's value attributed to exchanges' hasty liquidations. Despite this initiative, there was a further 3.3% decrease in OM prices within 24 hours post-announcement, indicating a significant blow to investor trust.

This effort will see approximately $160 million worth of tokens destroyed, with John Patrick Mullin contributing around $80 million worth of his holdings towards this purpose. The proposal also involves other undisclosed tokens held by various ecosystem partners. These steps are intended to enhance staking rewards and adjust the bonded ratio from 31.47% down to 25.30%.

Mantra specializes in allowing users to tokenize tangible assets like real estate and commodities for compliant digital investments through its OM token, which facilitates transactions and governance within its ecosystem.

Mantra to Burn $160M OM Tokens, 50% From DAO’s Founder, Following 90% Price Crash

The tokens are part of John Mullin's team allocation that were staked when the network first started in October 2024.

• Mantra plans to burn 300 million OM tokens, including 150 million from founder John Patrick Mullin, to boost staking rewards.
• The token burn follows a 90% crash in OM's value, attributed by the platform to reckless liquidations by exchanges.
• Despite the burn announcement, OM prices fell 3.3%, reflecting a decline in investor confidence.

In another development earlier this year, Mantra collaborated with DAMAC Group from the UAE to digitize assets totaling $1 billion, including real estate properties, hospitality ventures, and data centers. This partnership significantly increased the value of the OM token.

Despite experiencing substantial growth previously—rising over 400% in 2024 with minimal buzz on social media related to cryptocurrencies—the recent decrease in OM's price suggests that investor confidence has taken a hit following these strategic decisions.

Mantra lets users tokenize real-world assets (RWAs) like real estate and commodities, enabling compliant digital investments in tangible assets. Its OM token facilitates transactions and governance.

In January, Mantra partnered with DAMAC Group, a UAE-based conglomerate, to tokenize $1 billion in assets, including real estate, hospitality and data centers, boosting the OM token's value.

OM was among the biggest market gainers in 2024, rising more than 400% on relatively low public conversation on crypto-related social media. The strength of the move intrigued traders and investors alike.

The OM price is down 3.3% over the past 24 hours despite the burn announcement, indicative of a steep hit in investor confidence.