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MANTRA’s 300M OM burn marks a major deflationary milestone, signaling long-term commitment—but short-term market sentiment remains cautious.
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With staking rewards expected to rise and Bitcoin leading a broader recovery, OM could rebound if momentum aligns with renewed investor confidence.
Following Mantra CEO John Patrick Mullin’s proposal to burn 300 million OM tokens and utilize a $109 million fund—which, according to a previous Crypto News Flash (CNF) report, aimed to restore community trust after recent turbulence—MANTRA has now confirmed plans to proceed with the token burn.
This bold move was shared in a recent tweet by The Layer 1 Blockchain for RWA, MANTRA:
@jp_mullin888 CEO and Founder is burning his allocation of team tokens. For more and why, read on.https://t.co/Ttll5gPj3S pic.twitter.com/QpmqkNB6Jy
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 21, 2025
However, a decision that comes at a time when OM’s price is under heavy pressure. Despite the deflationary nature of the announcement, the market’s immediate reaction has not been as positive as anticipated.
OM Drops Despite Major Supply Cut
According to recent reports, instead of triggering a rally, OM’s price dropped 5% within 24 hours of the token burn announcement and continues to trade around $0.54. This adds to the token’s alarming 91% decline over the past month.
Analysts suggest the negative sentiment may stem from broader concerns about market volatility and liquidity rather than skepticism about the burn itself.
Burn Mechanics and Staking Implications
As data shows, the technical process has been made transparent, with transaction hashes shared for public verification. Once burned, OM’s circulating supply will drop from 1.82 billion to 1.67 billion—an 8.2% reduction. The burn also decreases the number of staked tokens, reducing the network’s bonded ratio from 31.47% to 25.30%.
This drop in the bonded ratio carries major implications for OM stakers. With fewer tokens locked in staking, the Annual Percentage Rate (APR) is expected to rise, offering higher rewards to remaining participants.
Market Context: Bitcoin Leads Broader Crypto Recovery
As CNF revealed in a recent post, Mantra TVL has soared 500% while the OM price continues to nosedive. While OM struggles to recover, Mantra’s OM is currently priced at $0.5159, reflecting a 5.64% decrease in the past day and 14.97% over the past week.
On the other hand, Bitcoin (BTC) is showing resilience. If BTC continues gaining strength, altcoins like OM may eventually ride the wave—especially as tokenomics like MANTRA’s become more deflationary and community-aligned. At the time of writing, BTC trades at $87,373, up 0.78% in the past day and 3.00% in the past week.
