MANTRA Announces the Burning of 300 Million OM Tokens — Here Is What This Means for the Price

After the proposal to burn 300 million OM tokens and use the CEO Mantra's fund of 109 million dollars, John Patrick Mullin, the aim is to restore community trust after the recent turmoil - MANTRA has now confirmed the plan to continue token burning. This bold move was shared in a recent tweet from The Layer 1 Blockchain for RWA, MANTRA:

However, a decision was made at a time when the price of OM was under significant pressure. Despite the deflationary nature of the announcement, the market's immediate reaction was not as positive as expected. OM Decrease Although Supply Is Cut Significantly According to recent reports, instead of triggering a price rally, the price of OM has fallen by 5% within 24 hours after the token burning announcement and continues to trade around $0.54. This adds to the alarming 91% drop of the token over the past month. Analysts believe that the negative sentiment may stem from general concerns about the volatility and liquidity of the market rather than skepticism about the decline itself. Burning Mechanism and the Significance of Staking As the data shows, the technical process has been transparent, with transaction hashes shared for public verification. After the burning, the circulating supply of OM will decrease from 1.82 billion to 1.67 billion—a reduction of 8.2%. The burning also reduces the number of tokens staked, decreasing the network's staking ratio from 31.47% to 25.30%. The decrease in this staking ratio has significant impacts on OM stakers. With fewer tokens locked in staking, the annual percentage rate (APR) is expected to rise, providing higher rewards for the remaining participants. Market Context: Bitcoin Leads the Broader Cryptocurrency Recovery As CNF revealed in a recent post, Mantra TVL has surged by 500% while the price of OM continues to plummet. While OM is struggling to recover, Mantra's OM is currently priced at $0.5159, reflecting a decrease of 5.64% over the past day and 14.97% over the past week. On the other hand, Bitcoin (BTC) is showing signs of recovery. If BTC continues to gain strength, altcoins like OM may eventually follow this wave—especially as tokenomics like MANTRA become more deflationary and more community-oriented. At the time of writing, BTC is trading at $87,373, up 0.78% in the past day and 3.00% in the past week.