MANTRA launches $25M token buyback backed by key investors

– MANTRA begins a $25M buyback of its OM token, funded by investors.

– This follows Inveniam’s $20M investment, raising total commitments to $45M.

– The buyback will be executed transparently, with updates shared on X and OM dashboard.

– The buyback program could retire about 10% of OM’s circulating supply.

Real-World Asset tokenisation layer 1, MANTRA built to support tokenized financial assets, said on Wednesday that it has started a $25 million repurchase of its OM token, marking the first stage of a program designed to reinforce the token’s market value and signal confidence from its backers.

The buyback, carried out through MANTRA AG, a subsidiary of the MANTRA Chain Association, will take place in stages over the coming months. Independent trading firms will carry out recurring purchases across major centralized exchanges, according to the company. After each round, the tokens will be moved off exchanges, converted to MANTRA’s mainnet standard, and staked with the network’s validators.

The announcement follows a $20 million investment from Inveniam earlier this summer, which MANTRA said would be used to strengthen its market infrastructure and attract institutional participation in blockchain-based private assets. Together, the two commitments amount to at least $45 million in backing for the project this year.

John Patrick Mullin, MANTRA’s chief executive and founder, described the buyback as a show of long-term conviction in the platform. 

“This buyback program is a pivotal moment for MANTRA. It is not merely a financial transaction but a signal of confidence from our existing partners and key stakeholders. Through the repurchasing of OM on the open market, we reinforce our belief in the long-term utility of the token, support our vision for the ecosystem and return value to token holders,”  he said in a statement.

The program will be conducted openly, MANTRA added. Updates on the progress of each tranche will be posted on the company’s official account on X, with details of the wallets holding the repurchased and staked tokens displayed through the OM dashboard.

At today’s market levels, MANTRA said the planned repurchases would cover about 110 million OM tokens, representing roughly 10 percent of the total tokens currently in circulation. The size of the commitment places the effort among the larger token buybacks carried out in recent years in the digital asset sector, where such moves are often seen as tools to steady markets and demonstrate financial strength.

Mullin had first signaled the possibility of a token repurchase earlier in April, noting it as part of MANTRA’s strategy to build credibility with investors and expand the use of tokenized real-world assets on its network.

The execution of the plan, backed by investor funding, appears to mark a critical step in that strategy. 

Mantra’s CEO previously revealed a token burn of 300 million OM tokens reserved for the team in mid April. Mantra’s OM is currently trading at $0.23 with a market capitalization of $243M. The token is up by 2% in the last 24 hours.