In a bold move following the significant collapse of its OM token, the decentralized finance (DeFi) platform Mantra is advocating for industry-wide collaboration to enhance investor safety. The incident, which occurred on April 30, has prompted leaders in the crypto space to rethink their policies and practices to prevent similar occurrences in the future.
Mantra’s CEO, John Mullin, emphasized in a recent announcement that the implications of the OM token crash extend beyond their platform, highlighting the broader vulnerabilities within the crypto industry. He warned that ‘liquidation cascades could happen to any project’ due to ‘aggressive leverage positions’ on various exchanges, identifying this as a pressing threat to investors.
As part of their response, Mantra has initiated cooperation with major exchanges to improve market stability and is calling upon the industry to share insights on how exchange policies can mitigate risks for investors. This proactive stance reflects a commitment to not only addressing their internal challenges but also tackling systemic issues that affect the wider crypto market.
Implementing Governance Improvements
In addition to urging centralized exchanges to reassess their leverage policies, Mantra has laid out several specific reforms following the OM crash. A primary focus is on governance improvements designed to enhance decentralization within the Mantra chain. The update indicates a plan to significantly reduce internal validators while onboarding more external partners. By the end of Q2 2025, Mantra aims to have halved its internal validators and added 50 external partners.
Moreover, a significant step taken by Mantra includes the burning of 150 million staked OM tokens, effectively decreasing the total token supply and reinforcing financial discipline. The introduction of a real-time dashboard featuring tokenomics data is another initiative aimed at enhancing transparency and trust within the ecosystem.
Proudly, the Mantra chain continued to operate smoothly during the price volatility, even witnessing transaction volumes at record highs. This resilience is a testament to its underlying infrastructure and potential for long-term reliability.
As the crypto landscape continues to evolve, Mantra’s call to action underscores the necessity for cohesive strategies and robust policies that can protect investors and stabilize the market. The conversation around safety in DeFi is more crucial than ever, and it is imperative that all stakeholders engage in this meaningful dialogue.
This is a developing story, and further information will be added as it becomes available.
