Mantra Calls for Collective Action After OM Token Collapse

Mantra is urging industry-wide cooperation following the collapse of its OM token, which it insists underscores a larger issue in the crypto space concerning risky exchange policies. CEO John Mullin highlighted the dangers of liquidation cascades related to aggressive leverage positions. Alongside calls for changes at centralized exchanges, Mantra is implementing governance improvements and has taken steps to enhance transparency post-crash.

In a bid to address the fallout from the significant drop in the value of its OM token, Decentralized finance (DeFi) platform Mantra has called for an industry-wide effort to safeguard investors. The company’s recent update, released on April 30, outlined the crash as a situation that stretches beyond just Mantra’s immediate issues. CEO John Mullin expressed serious concerns, pointing out that “liquidation cascades could happen to any project in the crypto space”, highlighting the dangers posed by risky leverage positions on exchanges.

Mantra’s update did not just stop at identifying problems; it also offered a series of solutions. Among them was a strong plea for centralized exchanges worldwide to revisit their leverage policies to enhance market stability. The platform is actively working with major exchanges to gather input on how these policies could be improved or adjusted to mitigate investor risks. This initiative aims to create a safer environment in the turbulent world of cryptocurrency trading.

On the governance side, Mantra announced some changes designed to strengthen its underlying framework following the OM crash. A commitment was made to increase decentralisation on the Mantra chain by reducing the number of internal validators and introducing external partners. By the end of Q2 2025, they plan to halve the internal validators and have 50 external partners in place to bolster validation efforts.

Another significant move from Mantra included the burning of 150 million staked OM tokens, effectively lowering the total token supply. This action, according to the platform, is intended to boost token value and investor confidence. Moreover, to improve transparency, Mantra has rolled out a real-time dashboard displaying tokenomics data, which aims to keep investors informed about critical metrics.

Additionally, the firm has unveiled plans for a new Ethereum Virtual Machine-compatible testnet named Omstead, currently in alpha testing, which should bolster its technical functionality. The update noted that despite the recent drop in token prices, the Mantra chain continued to function normally without interruptions, even witnessing peak transaction volumes during this period of turmoil.

Cointelegraph reached out to Mantra along with prominent exchanges like Binance and OKX for their take on Mantra’s call for reform regarding exchange policies, but unfortunately, no responses were received by the time this article went to press. As the situation evolves, more information will emerge, and we’ll keep you updated on any new developments.

In related news, Ethereum seems to be taking the lead in the $16.1 trillion tokenization race, putting pressure on traditional finance (TradFi) players.