The OM token of Mantra faced a sharp decline in its value, causing significant market fluctuations. CEO John Mullin analyzed the situation and outlined recovery steps.
Dramatic Crash of the OM Token
On April 13, 2025, the OM token experienced a sharp drop of over 90%. Its value fell from over $6 to below $0.45 in just a few hours, significantly impacting market capitalization. John Mullin, CEO of Mantra, identified "systemic risks" as a core issue and initiated recovery measures.
Leadership and Governance Strategy
John Mullin emphasized the need to collaborate with exchanges to reduce market volatility and improve governance through decentralization. He also proposed reducing the token supply to address these challenges. "By the end of Q2 2025, we'll have reduced internal validators by half and onboarded 50 total external partner validators."
Market Impact and Future Plans
The crash increased transaction volumes on the Mantra chain while operations remained stable. Nonetheless, it revealed broader market volatility concerns. Reducing OM tokens is expected to enhance long-term stability and liquidity. An official report from Mantra indicates plans to burn a total of 300 million OM tokens—150 million team tokens plus potentially another 150 million through conversations with ecosystem partners.
Mantra's efforts to prevent future market shocks through recovery, governance, and risk mitigation are seen as essential to stabilizing and rebuilding investor trust. Regulatory and technological improvements are anticipated, informed by past trends and current analysis.
