MANTRA Suggests Ending ERC20 Version of OM

The MANTRA project announced its plan to abandon the OM token in the ERC20 standard and transition entirely to its own MANTRA Chain network. The proposal has been published for voting and already received support from all participants who took part in the early vote.

The MANTRA team explained the initiative as necessary to align OM tokenomics with the current network architecture, which is focused on tokenizing real-world assets (RWA). Since the launch of the mainnet, users have already transferred 250 million OM to MANTRA Chain – 28% of the total ERC20 tokens.

Full Migration by 2026

The proposal includes a phased withdrawal of the ERC20 version of the token. By January 15, 2026, all OM on Ethereum will be officially declared invalid. The token transfer will go through a dedicated bridge, after which the tokens on Ethereum will be canceled, and the equivalent on the MANTRA network will be handed over to the MANTRA Chain Association. These funds may be redistributed at the discretion of the association, including burning or community support.

The contract number and migration link are available on the voting website.

8% Inflation and Supply Cap

The plan also proposes to return OM inflation to its original level of 8%, which, at the current staking level, would provide around 18% annual yield. According to the announcement, this change is intended to accelerate the transition of users to MANTRA Chain.

In addition, the network will set a strict cap on the total supply of tokens at 2.5 billion OM. This change requires an update to the Bank module and will take effect if the proposal is approved. A review of the inflation parameters is scheduled for January 15, 2026.

Liquidity Concentration in One Network

To improve trading efficiency, MANTRA plans to transfer protocol liquidity from other networks into the main one. The first networks will be Base, Polygon, and BNB Chain. Liquidity in them will be moved immediately after the proposal is approved. Ethereum will follow later in the fourth quarter of 2025. This will help create deeper liquidity pools within MANTRA Chain.

Changes in the Validator System

For better security and decentralization, the number of validators managed by the MANTRA Association will also be reduced from five to two. This change will take effect in the third quarter of 2025. In addition, by the end of 2025, association validators will begin charging fees, which should encourage token delegation by network participants.

Funds for Ecosystem Development

MANTRA plans to direct all previously confiscated OM tokens from its anti-sybil measures, as well as future rewards for the team and key contributors, toward ecosystem support.

The funds will be allocated to three areas:

• grants for the development of MultiVM applications,
• programs to onboard real-world asset issuers,
• user incentives to increase network activity.

Voting on the proposal runs from August 20, 2025, to August 22, 2025.

This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.