Mantra has introduced a new governance proposal that would phase out its ERC-20 OM token on Ethereum and consolidate the asset entirely on Mantra Chain.
The plan, unveiled on August 20 via X, sets January 15, 2026, as the deadline for the complete deprecation of ERC-20 OM. The migration roadmap outlines a managed sunset process in collaboration with exchanges. Any ERC-20 tokens left unbridged after the deadline will be reclaimed by the Mantra Chain Association (MCA) and redirected toward ecosystem growth initiatives.
We just shared our proposal to bring $OM hOMe 🕉️
For those seeking the TL;DR plus our reasoning for establishing MANTRA Chain as the native foundation for $OM, we invite you read on 🧵👇 pic.twitter.com/sDQHbGCquA
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) August 20, 2025
The proposal seeks to eliminate the long-standing split between Ethereum-based OM and the native version issued on Mantra Chain. Liquidity across networks such as Base, Polygon, and BNB Chain will be consolidated first, with Ethereum liquidity scheduled to follow later in the year. Mantra expects the shift to deepen liquidity pools, reduce user confusion, and strengthen token utility.
Alongside the migration, the team has proposed reintroducing an 8% annual inflation rate, which would lift staking yields to around 18% APR. The protocol would also implement a hard supply cap of 2.5 billion OM, with inflation scheduled for review in early 2026.
Changes to validator operations are also included in the governance package. The MCA plans to cut its number of active validators from five to two in the third quarter of 2025, redistributing stake to bolster decentralization. By year-end, commission fees will also be applied to MCA-run validators to encourage broader community participation.
Mantra described the migration as part of its MultiVM roadmap, aiming to position the network as a regulated platform for tokenized real-world assets. The move comes shortly after the project’s fifth anniversary and the addition of Binance as a validator. To date, more than 250 million OM have already been bridged to Mantra Chain, signaling what the team views as a natural consolidation step.
Additionally, In a bold move to restore investor trust and stabilize the value of Mantra’s native token, the platform’s founder and CEO, John Patrick Mullin, began the process of unstaking 150 million tokens for permanent removal from circulation.
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