Following the recent collapse of the Mantra (OM) cryptocurrency, CEO John Patrick Mullin has suggested burning the team's OM tokens as a way to rebuild investor trust.
Mullin's proposal comes at a time when the OM token is showing signs of a rebound, with its value increasing by double digits in the past day.
The CEO shared his intention to burn all team tokens in a recent post on X (formerly known as Twitter), stating that once the project improves, the community and investors can determine if he has regained their trust.
Mullin clarified that the team's allocations, amounting to 300 million OM (16.88% of the total supply of 1.78 billion), are currently locked under a vesting schedule until April 2027, with a gradual vesting process expected to conclude by October 2029.
Despite Mullin's proposal, Crypto Banter founder Ran Neuner expressed concerns, emphasizing the importance of maintaining team motivation by keeping incentives intact.
Mullin, however, specified that his plan initially applies to his own token allocation, consisting of 772,000 OM tokens, and suggested the possibility of distributing the tokens through a community-controlled mechanism.
Further details about a potential OM token buyback program and supply burn initiative will be disclosed by the team following the release of a comprehensive post-mortem report to address the reasons behind the OM crash.
Mantra is facing allegations of engaging in a pump-and-dump scheme due to the significant erosion of investor trust following the cryptocurrency's plummet from $6.3 to under $0.5, resulting in over $5.5 billion in market capitalization loss.
Mullin has refuted the accusations, stating that the team did not sell any OM tokens, and emphasized the team's transparency regarding their wallets and holdings, which are long-vested and unmoved.
Additionally, the Mantra Chain Association has conducted over-the-counter transactions totaling $25-$30 million for business operations, with the tokens remaining locked and vesting periods starting later this month.
Despite the challenges faced by Mantra, the OM token has shown signs of recovery, surging by 30% over the past 24 hours and trading at $0.78 at the time of reporting.