Mantra CEO John Marin said he plans to burn all of his team’s tokens to regain trust in the network’s community after the sudden collapse of the mantra (OM) tokens on April 13th.
“We’re planning on burning all of our team tokens. When we flip through our community, investors can decide if they’ve won it,” Marine posted on X on April 16th.
Mantra 300 million OM of 16.88% of the total supply of tokens for teams and core contributors, and they are currently locked, and are expected to be released in phases between April 2027 and October 2029, according to a blog post on April 8th.
The team’s tokens are worth around $236 million, and OM currently trades around 78 cents, but before the token sinks on April 13, it’s worth around $1.89 billion, reaching a low of around $6.30 to 52 cents, wipes away more than $5.5 billion worth.
Source: JP Mullin
While many community members welcomed Marine’s pledge, others saw the token burns as a potential blow to the team’s long-term commitment to building a real-world asset tokenization platform.
“This is a mistake. We want a highly incentive team. Burning incentives may seem like a good gesture, but it will hurt your team’s motivations in the long term.”
Marine suggested that a decentralized vote could determine whether to burn 300 million teams tokens.
The mantra recovery process is already underway
Marine has promised a post-mortem statement explaining what was wrong with being transparent with the community.
Speaking to Cointelegraph on April 14, Mullin outlined plans to stabilize the price of OM by leveraging a $109 million mantra ecosystem fund for potential token buybacks and burns.
Related: Red flag? Mantra’s TVL jumped 500% as OM prices collapsed
Mullin’s company managed 90% of OM’s token supply and strongly countered rumors that it was engaged in insider trading and market manipulation.
Mantra claims the explosion of OM prices was caused by “reckless liquidation,” adding that it is not related to the actions taken by the team.
OKX and Binance were one of the code exchanges that saw important OM activity just before the token collapsed.
Both exchanges denied fraud and attributed the collapse to the October OM Tocononomics, resulting in the extraordinary volatility that ultimately caused a massive amount of cross-cross-cross-cross-closing liquidation on April 13th.
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