Source: Cointelegraph Original: "{title}"

Mantra CEO John Mullin stated that in order to regain the trust of the network community after the sudden collapse of the Mantra (OM) token on April 13, he plans to burn all the tokens held by his team.

“I plan to burn all the tokens held by our team, and when we turn the situation around, let the community and investors decide whether I deserve their trust,” Mullin posted on X (formerly Twitter) on April 16.

According to a blog post on April 8, Mantra reserved 300 million OM tokens for its team and core contributors, accounting for 16.88% of the total supply of nearly 1.78 billion tokens. These tokens are currently locked and were scheduled to be unlocked in phases from April 2027 to October 2029.

Currently, the value of these team tokens is approximately $236 million, based on the current OM price of about $0.78. Before the token plummeted on April 13, the value of these tokens was close to $1.89 billion, when the OM price was about $6.30, and then dropped to a low of $0.52, resulting in a market cap evaporation of over $5.5 billion (data source: CoinGecko).

Source: JP Mullin

Many community members welcomed Mullin's commitment, but some believe that burning the tokens may undermine the team's long-term commitment to building a real-world asset tokenization platform.

“This would be a mistake. We want the team to have strong incentives. Burning incentives sounds like a nice gesture, but in the long run, it will dampen the team's motivation,” said Crypto Banter founder Ran Neuner.

Mullin stated that whether to burn the 300 million team tokens could be decided through decentralized voting.

The recovery process for Mantra has already begun.

Mullin committed to releasing a post-mortem report to transparently explain to the community the reasons behind the issues.

In an interview with Cointelegraph on April 14, Mullin stated that he plans to use $109 million from the Mantra ecosystem fund for possible token buybacks and burns to stabilize the OM price. Previously, OM had plummeted from $6.30 to a low of $0.52.

Mullin's company strongly denied controlling 90% of the OM token supply and denied any involvement in insider trading or market manipulation.

Mantra stated that the collapse of the OM price was triggered by “reckless liquidations,” emphasizing that the incident was unrelated to any actions by the team.

OKX and Binance were among the cryptocurrency exchanges that saw significant trading activity before the OM collapse.

Both exchanges denied any wrongdoing and stated that the collapse was related to the token economic model adjustments made in October last year, combined with unusual market volatility, which ultimately triggered large-scale liquidations across exchanges on April 13.

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