In a bold move to regain the trust of its community, Mantra CEO John Mullin announced plans to burn 300 million locked-up OM tokens that were allocated to the network’s team. This decision follows the dramatic collapse of the Mantra (OM) token, which saw its value plummet from approximately $6.30 to a staggering low of $0.52 on April 13, causing a loss of over $5.5 billion in market value.
Mullin expressed his commitment through a post, stating, “I’m planning to burn all of my team tokens and when we turn it around the community and investors can decide if I have earned it back,”
indicating a willingness to put the future of the project in the hands of its supporters, which could foster a sense of ownership and accountability.
This initiative comes as a part of a larger recovery strategy for the Mantra ecosystem. The tokens in question comprise about 16.88% of the total supply, which amounts to approximately $236 million at current rates. Community reactions have been mixed; while some members welcomed the pledge as a sign of good faith, others raised concerns that burning these tokens could undermine long-term incentives for the development team. Influential voices, including Crypto Banter founder Ran Neuner, expressed skepticism, arguing that This would be a mistake. We want teams that are highly incentivized…
Mullin has promised transparency in the recovery process, with plans to issue a post-mortem statement addressing what went wrong. He emphasized the importance of communicating openly with the community, as trust has been significantly eroded following OM’s market freefall. Moreover, he mentioned the strategic use of the $109 million Mantra Ecosystem Fund to potentially facilitate token buybacks, further stabilizing the OM price amidst ongoing volatility.
Setting a precedent for decentralized governance, Mullin proposed that a vote among community members could determine the future of the team’s tokens, indicating his desire to involve the community in critical decision-making processes. As the market for OM remains turbulent and recovery efforts are underway, all eyes will be on how effectively Mullin can rally support and restore confidence in the Mantra platform.
In summary, the burning of team tokens may serve as a double-edged sword: if successful, it could reinstate trust; if not handled carefully, it may raise further doubts about the team’s commitment to its objectives and the sustainability of the project.
