In response to the recent Mantra (OM) crypto collapse, CEO John Patrick Mullin has proposed burning the team’s OM tokens to restore investor confidence.
This comes as the OM token continues to show signs of recovery, surging by double digits over the past day.
Will OM Token Burn Restore Trust? CEO Mullin’s Bold Proposal
Mullin revealed his plans in a recent post on X (formerly Twitter).
“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,” the post read.
He explained that all team allocations, totaling 300 million OM (16.88% of the 1.78 billion total supply), remain locked under a vesting schedule until April 2027. After the cliff period, the tokens will begin to vest gradually. Furthermore, the full vesting is expected to be completed by October 2029.
However, Crypto Banter founder Ran Neuner has voiced concerns about the plan.
“This would be a mistake. We want teams that are highly incentivized. Burning the incentive may seem like a good gesture but it will hurt the team motivation long term,” he cautioned.
Neuner suggested that the team should continue working on improving the project and its value. This, in turn, would naturally restore investor confidence over time.
Nonetheless, Mullin clarified that his plan would initially apply only to his personal share of tokens. The CEO recently disclosed that he holds 772,000 OM tokens.
“I was only suggesting my allocation to start with,” Mullin noted.
He also proposed an alternative. This could involve allocating the tokens to a community-controlled dispersal mechanism.
“Regardless, we keep building,” he added.
While the plans are still being finalized, Mullin revealed that the team will share further details about a proposed OM crypto token buyback program and a supply burn initiative after releasing a comprehensive post-mortem report. The report will address what went behind the OM crash.
On April 13, BeInCrypto was the first to report that OM’s price plunged from $6.3 to below $0.5. The catastrophic decline erased over $5.5 billion in market capitalization.
The collapse has significantly eroded investor trust. In fact, Mantra now faces serious allegations of orchestrating a pump-and-dump scheme. Despite this, Mullin maintains that the team had nothing to do with it.
In a recent interview, the Mantra CEO confirmed that the team did not sell a single OM token. He explained that the team had published a transparency report the previous week outlining all the team wallets and holdings. He said the team’s tokens are long-vested and have not been moved.
“We don’t have leverage position on exchanges. We don’t do that,” he said.
Importantly, Mullin also acknowledged that the Mantra Chain Association has made over-the-counter (OTC) transactions totaling $25-$30 million to fund business operations. However, he detailed that these tokens remain locked, with vesting periods starting later this month.
“None of the OTC sales that we’ve had have actually been executed yet. So the tokens are all still locked,” Mullin remarked.
Meanwhile, the OM crypto token appears to be recovering in the aftermath of the crash. BeInCrypto data showed that the altcoin surged by 30% over the past 24 hours. At press time, OM was trading at $0.78.
The post Mantra CEO Eyes Token Burn to Win Back Trust Amid OM’s Double-Digit Price Recovery appeared first on BeInCrypto.