DeFi platform Mantra outlines governance reforms and calls for industry-wide collaboration to boost investor safety.

Decentralised finance (DeFi) platform Mantra has linked the sudden collapse of its OM token to broader industry issues, particularly risky leverage policies on exchanges. In an official update on 30 April, CEO John Mullin warned that “liquidation cascades could happen to any project” in the crypto space. He urged exchanges to reassess their leverage offerings to safeguard investors, stressing that Mantra is already cooperating with major platforms to enhance market stability.

Governance Overhaul and Validator Expansion

As part of its recovery plan, Mantra announced significant governance improvements focused on decentralisation. The project pledged to halve its internal validators and onboard 50 external partner validators by the end of Q2 2025. This shift aims to strengthen the chain’s resilience and ensure a more decentralised validator ecosystem.

Token Burn and New Transparency Tools

In an effort to stabilise the OM token economy, Mantra revealed it has permanently burned 150 million staked OM tokens, reducing the total supply. To improve transparency, the platform also launched a real-time dashboard providing live tokenomics data, giving users a clearer view of the ecosystem’s health.

Technical Upgrades and Continued Operations

Despite the OM price collapse, the Mantra chain maintained uninterrupted operations, even as transaction volumes reached all-time highs. Mantra also announced the alpha testing of Omstead, a new Ethereum Virtual Machine (EVM)-compatible testnet, aimed at enhancing the chain’s technical resilience against future market volatility.

Mantra’s call for an industry-wide review of exchange leverage policies underlines a growing concern within crypto markets about systemic risks. As of publication, major exchanges like Binance and OKX have not publicly responded to the appeal.