John Patrick Mullin, the head of the decentralized finance (DeFi) platform Mantra, has started the process of removing 150 million OM
These tokens, which were previously staked, are being withdrawn with the plan to send them to a burn address by April 29. Once burned, they will be permanently taken out of the supply.
Mantra shared that it is in discussions with other major players in its network to potentially remove an additional 150 million OM. If that happens, the total amount burned would rise to 300 million tokens.
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Removing the first 150 million tokens will reduce OM’s total supply to 1.67 billion. It will also lower the number of staked tokens by over 26%, going from 571.8 million to 421.8 million. As a result, the staking rewards for users are expected to increase.
Mantra explained that this change will reduce the bonded ratio, from 31.47% to 25.30%, which should raise the annual staking return.
Mullin had also created a poll on X to ask users what he should do with his tokens. The poll included options like longer lock-up periods or unlocking tokens based on milestones.
While the poll received close to 9,000 votes, some users argued that it could signal uncertainty about the planned burn.
This token burning decision comes after a drop in OM’s value on April 13. What caused the price drop? Read the full story.
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