MANTRA announced on Apr 21 that it plans to destroy 300 million OM tokens. This will reduce supply and increase staking rewards, as part of a large-scale trust-building initiative, after the OM token crashed about 90% on Apr 13 .
These tokens were originally staked to secure the network when they went live on Mainnet in October 2024. These tokens are now being unstacked and will be burned permanently on April 29, 2025. This will reduce OM's total supply by 150 million OM's from 1.82 billion to 1.67 billion.
In addition, MANTRA is also working with its ecosystem partners to burn another 150 million OM. Considering the previous burn, MANTRA will have burnt 300 million OM. This burn will drop the staking ratio from 31.47% to 25.30%, enabling higher staking rewards for the participating stakers. The blockchain will be validated once the burn is complete , as per reports.
Token burning in cryptocurrency is the process of permanently destroying some digital coins. To do this, users send tokens to a unique address, which no one can access, destroying them.
Most of the time, when projects opt to burn tokens , they want to reduce the total number of tokens available, which can increase the price of the small amount of remaining tokens. This is similar to how limited-edition items become more valuable the more scarce they become.
Token burning can also provide bigger rewards to users based on the number of tokens they are holding (including staking), so there is more incentive to be involved. Ultimately, it shows that the project team is serious about creating long-term value and will not just dip out on their community.
