Mantra (OM) Price Rises 30% Following CEO’s Token Burn Proposal
After a significant decline, Mantra's OM token has surged 30% in the past 24 hours. This recovery is linked to CEO John Mullin’s commitment to burn all allocated team tokens, totaling 300 million OM, which represents 16.88% of the total supply.
The release of these tokens was scheduled for April 2027 to October 2029 but is now proposed for destruction. Previously, on April 13, OM's price fell from $6.30 to $0.52, losing over $5.4 billion in value.
Reactions to the Token Burn Proposal
- Mullin suggested that the community should vote on whether he should get his allocation back after the burn.
- Opinions are divided; some view it as a community-first initiative, while others warn it could undermine team motivation.
- Critics propose adjusting vesting schedules instead of burning incentives.
- Mullin also plans to conduct a comprehensive review of the April crash and use the $109 million Mantra Ecosystem Fund for stabilization through controlled burns and buybacks.
- The team denies rumors of insider trading and attributes the price drop to mishandled cross-exchange liquidations and changes to tokenomics.
Market Outlook
Currently, OM trades around $0.78, with a market cap increase of 30%, reaching $761 million. Analyst Dom’s Crypto forecasts a potential rally, predicting a surge to $3.50 if the price breaks $1.20, indicating a possible 500% increase from current levels.