Mantra's OM Token Surges 30% After CEO Burns Personal Allocation

CEO John Patrick Mullin has proposed a bold strategy to revive confidence in the Mantra ecosystem by burning his personal allocation of OM tokens. This move comes after a significant price collapse of the OM token, which has sparked a 30% surge in its price within 24 hours. The crypto community is closely monitoring the situation to see if this transparency-led approach can restore faith in the project.

Mullin announced his intention to burn his team’s token allocation, totaling 772,000 OM, in a post on X. This symbolic act is aimed at demonstrating his commitment to the project following the market downturn. Mullin emphasized that all team tokens remain locked under a structured vesting schedule until April 2027, with full vesting not completing until 2029. He clarified that the token burn would initially apply only to his share and would not affect the wider team’s incentives. Mullin positioned the move as a personal sacrifice to win back community trust, stating, “When we turn it around, the community can decide if I’ve earned it back.”

While the announcement initially boosted OM’s price, not all voices in the crypto space are supportive. Crypto Banter’s Ran Neuner criticized the proposal, warning that it could weaken team motivation. Neuner suggested that such a burn could unintentionally harm the project’s internal dynamics. Despite this criticism, Mullin remained firm, stating that the gesture was meant to lead by example without disrupting the team’s reward structure. The move comes amid broader efforts to bring transparency and accountability to Mantra’s operations after the token’s catastrophic plunge from $6.30 to below $0.50.

Beyond the personal token burn, Mullin has pledged a post-mortem report on the collapse and hinted at a new buyback and burn initiative. These efforts are intended to stabilize the OM token’s supply and attract long-term holders. Mullin also suggested that burned tokens could be reallocated through a community-controlled dispersal mechanism, aligning future decisions with decentralized governance principles. Meanwhile, OTC transactions ranging between $25 million and $30 million were confirmed as business operation funding, though Mullin stated the tokens remain locked.

In a recent interview, Mullin reiterated, “We didn’t trade any OM during the crash. No leverage, no exchange positions.” This clarification comes amid rumors of insider token movements during the downturn, which Mullin categorically denied. Mullin’s OM token recovery strategy is a rare case of proactive crisis management in the crypto world. His willingness to burn personal tokens, publish a post-mortem, and launch a buyback initiative could serve as a turning point for Mantra’s future.

However, skepticism persists. If Mullin’s plans succeed in restoring investor trust and price stability, it may become a model for crisis recovery in DeFi projects. But failure could erode whatever goodwill remains. As OM continues to recover, all eyes are on how effectively the Mantra team follows through on these promises.