Following a dramatic decline in the value of the Mantra (OM) token, CEO JP Mullin has suggested burning the token reserve to regain community trust.
Collapse of OM Token Price
The OM token lost over 90% of its value in a single day, dropping from more than $6 to nearly $0.50, leading to a loss of billions in market capitalization.
Proposal to Burn Tokens
Mullin announced his intention to burn the entire team’s token reserve, worth hundreds of millions. This step aims to allow the community to decide if he has earned their trust back after the platform stabilizes.
Community and Expert Reactions
Some praised Mullin’s gesture as a sign of leadership, while others cautioned that removing incentives for developers could harm the project's long-term viability. Crypto personality Ran Neuner called it a 'mistake'. Instead of acting unilaterally, Mullin suggested allowing token holders to vote on whether the burn should proceed.
These events illustrate the complex relationships between projects and their communities, as well as the challenges cryptocurrency platforms face in unstable market conditions.
