Mantra Advocates for Industry Collaboration
In a move aimed at enhancing investor safety, Mantra, a decentralized finance (DeFi) platform, has advocated for greater collaboration across the cryptocurrency industry in response to the recent plummet of its OM token. The platform expressed that this situation transcends Mantra itself, with CEO John Mullin cautioning that liquidation cascades represent a significant threat applicable to all projects within the crypto sector. He noted that ‘aggressive leverage positions’ on exchanges can exacerbate risks for investors, underscoring the need for systemic solutions.
Response to Market Instability
Published on April 30, Mantra’s latest announcement urges centralized exchanges to reconsider their leverage policies as part of a broader initiative aimed at stabilizing the market.
“We’re cooperating with major exchanges to enhance market stability and urging our peers in the industry to contribute insights on exchange regulations that either mitigate or exacerbate investor risk,”
the platform’s update outlined.
Proposed Measures Post-OM Crash
To address the ramifications of this crisis, Mantra has laid out several proposed measures:
- Strengthen governance on the Mantra chain, focusing on decentralization as a core principle.
- Significantly diminish reliance on internal validators, planning to halve their numbers and introduce a total of 50 external validator partners by mid-2025.
- Remove 150 million staked OM tokens from circulation through a burning process.
- Launch a real-time dashboard presenting tokenomics data for improved transparency.
- Initiate alpha testing for a new Ethereum Virtual Machine-compatible testnet known as Omstead.
Operational Resilience
Interestingly, despite the turmoil in market prices, the Mantra chain maintained uninterrupted operations, benefiting from high transaction volumes during the downturn. Cointelegraph reached out to Mantra, as well as exchanges like Binance and OKX, to gather further insights regarding Mantra’s call for industry cooperation but had not received a reply at the time of publication.
Future Developments
This situation continues to evolve, with updates expected as new developments unfold.
