Mantra CEO John Patrick Mullin has made a bold move to restore investor confidence in the wake of a sharp collapse in the protocol’s native token, OM. Mullin has proposed burning his allocation of OM tokens, which were part of a larger 300 million OM allocation earmarked for the team. These tokens are subject to a cliff until April 2027.
In a public statement posted on X, Mullin pledged to destroy his share of the future allocation and stated that the community could decide whether he earns it back once the project recovers. He currently holds approximately 772,000 OM tokens, which is less than 1% of the over 80 million OM tokens in circulation as of April 15.
Despite his pledge to burn his tokens, Mullin did not reveal his OM token stake and stated that he would wait until the burn program was ready to share his portion of the token supply. The OM token experienced a significant drop in value on April 13, losing over 90% of its value in a single day, dropping from around $6.30 to under $0.50. The crash resulted in a market capitalization loss of approximately $5.5 billion, reducing it from $6 billion to $530 million. Although the OM token has since rebounded to $0.81 with a market cap nearing $800 million, it remains below its previous levels.
Mantra is a layer 1 blockchain built using the Cosmos SDK, focusing on tokenizing real-world assets and integrating regulatory compliance into its protocol. The platform recently obtained a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA), positioning it for growth in regulated digital asset markets.
Mullin attributed the collapse of the OM token to abrupt liquidations by centralized exchanges during a low-liquidity trading window, leading to rapid sell pressure. He denied that team members or investors sold tokens, stating that all allocations remain locked under a public vesting schedule.
Blockchain observers raised concerns about insider activity or wallet compromises, citing suspicious fund movements. Over $70 million in OM was reportedly transferred to exchanges through a single intermediary wallet before the collapse, drawing comparisons to the 2022 Terra ecosystem implosion.
Mullin mentioned that the team is investigating the situation and plans to provide details on centralized exchange involvement. He reiterated that Mantra’s tokenomics remain intact and verifiable through on-chain data.