Mantra CEO John Patrick Mullin has proposed burning his allocation of OM tokens in a move aimed at restoring investor confidence after the protocol’s native token suffered a sharp collapse.
Mullin said his tokens, part of a broader 300 million OM allocation earmarked for the team, are subject to a cliff until April 2027.
Token burn
In a public statement posted to X on April 15, Mullin pledged to destroy his share of that future allocation and stated that the community could decide whether he earns it back once the project recovers.
He revealed that he currently holds roughly 772,000 OM tokens, less than 1% of the over 80 million OM tokens circulating supply as of April 15, per Tokenomist data. Mullin allocated his tokens on the liquid staking protocol Fluxtra.
Despite his pledge and the revelation of his current holdings, Mullin did not reveal his OM token stake and said he would wait until the burn program was ready to share his portion of the token supply.
The OM token, which powers the Mantra blockchain, lost over 90% of its value on April 13, plunging from around $6.30 to under $0.50 in a single day.
The crash erased approximately $5.5 billion from its market capitalization, reducing it from roughly $6 billion to $530 million. Although OM has since rebounded to $0.81 with a market cap nearing $800 million, it remains well below prior levels.
Mantra is a layer 1 blockchain built using the Cosmos SDK, which focuses on tokenizing real-world assets and integrating regulatory compliance into its protocol.
The platform recently secured a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA), positioning it for growth in regulated digital asset markets.
Reckless liquidations
Mullin attributed the collapse to abrupt liquidations by centralized exchanges during a low-liquidity trading window, which triggered rapid sell pressure. He denied that team members or investors sold tokens, emphasizing that all allocations remain locked under a public vesting schedule.
Blockchain observers raised the possibility of insider activity or wallet compromises, citing suspicious fund movements.
Over $70 million in OM was reportedly moved to exchanges through a single intermediary wallet before the collapse, prompting comparisons to the 2022 Terra ecosystem implosion.
Mullin said the team is investigating and plans to publish details on centralized exchange involvement. He reiterated that Mantra’s tokenomics remain intact and verifiable through on-chain data.
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