In a significant move aimed at reinforcing trust and long-term value, MANTRA has announced the burning of 300 million OM tokens. This strategic initiative begins with CEO and Founder John Patrick Mullin fulfilling his public commitment to burn his entire team allocation of 150 million tokens. The decision highlights the project’s dedication to building a transparent, accessible, and inclusive financial ecosystem through asset tokenization.
The token burn process is designed to reduce the total supply of OM tokens, directly supporting tokenomics and potentially enhancing value for the community. This action also underscores MANTRA's commitment to aligning the interests of the team with those of token holders and users.
Details of the Initial 150 Million OM Burn
The initial burn involves 150 million OM from the Team and Core Contributor allocation. These tokens were originally staked at the network’s genesis in October 2024 to help bootstrap and secure the chain. The unstaking process has begun and is verifiable via public transaction hashes on the blockchain.
The unstaking period is set to conclude on April 29, 2025. Once completed, the tokens will be permanently sent to a burn address, effectively removing them from circulation.
Verification and Transparency
All transactions related to the unstaking and burning process are publicly traceable. This openness ensures that community members can independently verify each step, reinforcing MANTRA’s emphasis on operational transparency.
Planned Additional 150 Million OM Burn
Beyond the initial burn, MANTRA is engaged in discussions with key ecosystem partners to execute an additional burn of 150 million OM tokens. If realized, this would bring the total number of tokens burned to 300 million OM.
This expanded initiative reflects a broader strategy to enhance scarcity and support the token’s utility within the MANTRA ecosystem.
Impact on Staking and Tokenomics
The reduction of 150 million OM from the total supply will directly affect MANTRA's on-chain economics. The total token supply will decrease from 1.82 billion to 1.67 billion OM. Meanwhile, the amount of staked tokens will drop from approximately 571.8 million to 421.8 million OM.
Expected Increase in Staking APR
A key outcome of this burn is the change in the network’s bonded ratio—which measures the proportion of staked tokens relative to the total supply. This ratio is expected to decrease from 31.47% to 25.30%.
A lower bonded ratio typically leads to an increase in staking rewards, meaning stakers can expect a rise in annual percentage rate (APR) once the burn is executed. This offers a tangible benefit to participants who help secure the network through staking.
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Understanding MANTRA’s Mission
MANTRA Chain is a regulatory-compliant Layer 1 blockchain specifically designed for real-world asset (RWA) tokenization. It provides the tools and infrastructure needed for developers and institutions to tokenize physical and financial assets in accordance with global regulatory standards.
Licensing and Compliance
MANTRA holds a Virtual Asset Service Provider (VASP) license issued by Dubai’s Virtual Assets Regulatory Authority (VARA). This license permits MANTRA to operate as a virtual asset exchange and offer broker-dealer, management, and investment services—laying a strong foundation for trusted RWA tokenization.
Frequently Asked Questions
What does burning tokens mean?
Token burning is the process of permanently removing tokens from circulation. This is typically done to reduce total supply, increase scarcity, and potentially enhance the value of remaining tokens.
How will the token burn affect staking rewards?
By reducing the total supply and the amount of staked tokens, the bonded ratio decreases. This change is expected to result in a higher staking APR, offering better returns to those who stake OM.
When will the token burn be complete?
The unstaking process for the initial 150 million OM will finish on April 29, 2025. The tokens will be burned shortly after. The additional 150 million OM burn depends on ongoing discussions with ecosystem partners.
Is the burn process verifiable by the public?
Yes, all transactions related to the unstaking and burning process are visible on the blockchain. Transaction hashes have been shared to allow public verification.
Why is MANTRA focusing on RWA tokenization?
Real-world asset tokenization brings tangible assets like real estate, commodities, and financial instruments on-chain. This enhances liquidity, accessibility, and transparency in traditional markets, forming a bridge between conventional finance and decentralized systems.
👉 Learn more about RWA tokenization trends
Conclusion
The planned burn of 300 million OM tokens marks a pivotal moment for MANTRA, emphasizing its commitment to sustainable growth, community trust, and robust tokenomics. By reducing supply and increasing staking rewards, MANTRA not strengthens its economic model but also reaffirms its role as a leading compliant blockchain for real-world assets.
This move signals a mature and responsive approach to ecosystem development—one that values long-term holders and active network participants. As the project moves forward, transparency and strategic token management will continue to play a central role in its roadmap.