John Patrick Mullin, CEO of Mantra, has initiated the process of canceling 150 million OM tokens to send to the burn address in order to reduce supply and support token prices.
Mantra announced that this process started on April 21 and will be completed on April 29, when the number of tokens will be permanently removed from circulation.
Mullin stated that burning 150 million OM tokens is the first step to restore community trust, and Mantra is negotiating to burn an additional 150 million OM, bringing the total to 300 million.
This will reduce the total supply to 1.67 billion tokens and the amount of OM being staked will decrease by more than 26%, from 571.8 million to 421.8 million. As a result, the staking rate will drop from 31.47% to 25.30%, helping to increase the staking yield (APR).
The initiative to burn tokens after the sharp decline in OM price
After the price of Mantra dropped 90% on April 13, CEO Mullin announced that he would burn the entire amount of tokens that the team had staked, which he was allocated since the blockchain mainnet launched. These tokens were originally scheduled to be unlocked in 2027.
He also launched a poll on X to 'gauge community sentiment', providing options such as burning, extending ownership rights, or unlocking based on milestones.
The poll attracted nearly 9,000 votes, but also faced criticism as an inconsistent effort with the initial commitment.
