Mantra (OM), once a promising name in the DeFi space, has faced a dramatic fall, with its token plummeting by over $5.5 billion in value. On April 13, the OM token experienced a crash that left many investors stunned, reminiscent of the infamous Terra Luna collapse. In a bold move to restore community trust, Mantra’s CEO, John Mullin, announced plans to burn all team-held tokens, worth approximately $236 million. This move, he hopes, will help rebuild confidence and demonstrate accountability to the community.

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Mullin shared his intentions on social media, stating, “I’m planning to burn all of my team tokens and when we turn it around, the community and investors can decide if I have earned it back.” This announcement comes after the OM token’s value plummeted from a high of $6.30 to a low of $0.52, reflecting a devastating loss in market value. Before the crash, the team-held tokens were valued at a staggering $1.89 billion. Now, with OM trading at around $0.78, the team’s token stash has lost over 87% of its value.

The decision to burn the team’s tokens, about 16.88% of the total OM supply, has sparked mixed reactions within the community. While some praise Mullin’s transparency and accountability, others, like Crypto Banter’s founder Ran Neuner, caution that burning the tokens may undermine the team’s motivation. Neuner expressed concerns that removing the team’s incentive could harm the project’s long-term development. However, Mullin has suggested that the decision could ultimately be put to a community vote.

Alongside the token burn, Mullin promised to release a post-mortem report to explain the events that led to the crash. Mantra‘s leadership has also committed to using the $109 million Ecosystem Fund for potential token buybacks and further stabilization efforts.

Despite the crash, Mullin remains optimistic about Mantra’s future. He expressed gratitude to the community for their ongoing support, especially to long-term investors who have stuck by the project through turbulent times. The crash has reignited discussions about transparency and sustainability in the DeFi sector, with many questioning whether projects like Mantra can maintain trust after such major setbacks.

As the dust settles, the focus now shifts to how Mantra plans to rebuild and whether Mullin’s bold token burn strategy can reinstate confidence in the embattled project