John Patrick Mullin, co-founder and Chief Executive Officer of Mantra, has announced that the company is finalizing specifics for a token burn initiative and actively executing a buyback program.
These actions are a direct response to the recent and substantial decline in value experienced by the OM token.
Executives Initiate Actions to Recover Investor Trust Post-Collapse
The core objective is to restore investor confidence in the wake of a significant price plunge and ensuing allegations of market manipulation.
Details of Token Burn Program Nearing Release
Through a message posted on X this past Friday, Mullin conveyed that “the burn program details are in the final stages, and will be shared shortly.
The buyback program is also well underway.
We are continuously striving to support the Sherpas/OMies.
This communication was intended to reassure the Mantra community (“Sherpas/OMies”) and highlight the team’s immediate and dedicated efforts to address and resolve the financial impact of the OM token’s downturn.
OM Token’s Price Trajectory: Sharp Decline and Partial Rebound
OM, the primary utility token of the MANTRA ecosystem, experienced a dramatic contraction in price on April 13.
The token’s value plummeted by over 90%, reaching a low of $0.37 within a matter of hours.
This rapid liquidation event resulted in approximately $5 billion being erased from OM’s total market capitalization.
After this steep fall, OM demonstrated some resilience by recovering to levels above $1, though this recovery proved temporary with a later retracement.
Following Mullin’s latest public statements, however, the token reacted positively, recording gains as high as 14% on Friday, showcasing the market’s responsiveness to executive communications regarding recovery plans.
Mantra Team Emphatically Denies Token Sales During Price Drop
Since the onset of the token’s price crisis, the Mantra project team has consistently and unequivocally stated that no OM tokens were sold by the team during the abrupt price collapse.
This continuous denial aims to directly counter any speculation or accusation suggesting that internal token sales contributed to or exacerbated the dramatic devaluation of OM.
Official Explanation: Forced Liquidations Triggered Collapse
In his initial public statements made soon after the event, CEO Mullin asserted that uncontrolled forced liquidations occurring across centralized exchanges were the primary trigger for the 90% reduction in the OM token’s market value.
This explanation attributes the cause of the crisis to external market mechanisms rather than internal organizational actions or misconduct.
Internal Review Supports Forced Liquidation Conclusion
A formal statement from Mantra, issued on April 16, outlined the conclusions of an internal investigation.
This investigation reportedly confirmed that the main reason for the sharp price drop was the forced sale of OM collateral when trading volume was low.
This official finding aims to reinforce transparency and lend credibility to the team’s preliminary explanations regarding the incident’s cause.
Locked Status of Team Token Allocations Reaffirmed
The Mantra team also emphasized that all OM tokens specifically allocated to the team remain subject to vesting and lock-up schedules.
Furthermore, they indicated that current market activity predominantly involves legacy ERC-20 tokens, which are already in public circulation.
These points aim to reassure the community that team-initiated token offloading did not cause the price collapse.
Comprehensive Recovery Strategy Announced
Mantra has unveiled a comprehensive recovery plan to actively regain community confidence and effectively manage the repercussions of the recent price event.
Key components of this strategy include the launch of a buyback and token burn program, designed to decrease the token supply and potentially stabilize or uplift the price.
Additionally, Mantra intends to implement a live, publicly accessible tokenomics dashboard to increase transparency around token distribution and economic parameters.
Finally, Mantra plans to collaborate with cryptocurrency exchanges to enhance transparency and bolster market oversight, particularly for OM token trading.
CEO’s Personal Commitment to Token Burn Expressed
Demonstrating a strong personal stake in the recovery process, CEO Mullin has publicly pledged to burn his allocation of OM tokens.
This commitment is likely intended as a leadership signal, underscoring a shared burden of responsibility in rectifying the impact of the token’s price collapse and signaling confidence in the recovery plan.
Potential for Community Vote on Team Token Burn Proposed
Acknowledging and responding to community concerns about the potential implications of an extensive token burn for the long-term motivation of the Mantra team, Mullin has introduced the possibility of a decentralized, community-driven vote.
This proposed vote would specifically address whether to proceed with burning a substantial 300 million tokens originally allocated to the team.
This action indicates a willingness to integrate community governance principles into critical decisions concerning tokenomics and crisis resolution.
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