Mantra, a real-world asset tokenization platform that crashed with OM tokens earlier this month, is hoping that 16.5% of its total supply burns about $160 million worth of money to boost staking rewards after discussions with key partners.
The proposal to burn 300 million out of the 1.8 billion tokens will reduce the binding ratio from 31.47% to 25.30%. This includes 150 million OM or approximately $80 million tranches belonging to founder John Patrick Marin, and additional tokens owned by “Ecosystem Partners.” Details were not shared in Monday’s update.
Mullin’s tokens are part of the team allocations that were bet when the network first launched in October 2024. This concludes by April 29th, when the burn process that requires staking hits a burn address on the network.
“The staking process has begun for 150 million tokens from the team and the core contributor bucket tokens,” the team said.
The move followed the brutal 90% price crash of OM on April 13th, erasing more than $5 billion in market value in just a few hours. The mantra team pinned the collapse of “reckless liquidation” through exchanges at the time amid speculation that some investors were liquidating their positions.
Mantra allows users to tokenize real-world assets (RWAs) into real-world assets, such as real estate and products, allowing digital investments in tangible assets. That OM token promotes transaction and governance.
In January, Mantra partnered with UAE-based conglomerate Damac Group to tokenize $1 billion in assets, including real estate, hospitality and data centers, to increase the value of their OM tokens.
OM was one of the biggest market winners in 2024, rising over 400% in relatively low public conversations on crypto-related social media. The strength of the movements intrigued both traders and investors.
OM prices have fallen 3.3% over the past 24 hours despite the announcement of burns. This shows a sudden hit in investor trust.
