The MANTRA Finance (MF) community (Sherpas) recently approved a DAO proposal to have the DApp’s governance token $OM double down as the main token for the project’s upcoming Layer-1 ecosystem, MANTRA Chain.
Initially, the team had intended to launch a different token to be used on MANTRA Chain for validating the network, DApp deployment, and transactions, but a proposal put forward by a group of Sherpas to make $OM a Layer-1 token garnered overwhelming approval, with 99.5% of the participants voting for the proposal.
Following the approval, this native token, which currently only operates as a DApp token for the MF ecosystem, will have to undergo fundamental upgrades to enable a smooth transition onto the MANTRA Chain, as well as maintain sound tokenomics.
$OM Upgrade Proposal
According to an official announcement by the MANTRA team, another DAO proposal has now been put forward to facilitate the integration of the necessary changes in the $OM token model.
The proposal focuses on four key changes:
- Upgrading $OM: The proposal suggests the establishment of a PoS bridge, which will enable bridging the $OM token onto the Cosmos interchain, hence facilitating a smooth transfer process of the EVM-based $OM staked tokens onto the MANTRA Chain mainnet once it goes live later this year.
- New Reward Mechanism for Staking: Currently, $OM stakers are rewarded based on an auto-compounding feature. However, if this new proposal goes through, the reward mechanism will change to regular snapshots leading up to the mainnet, upon which existing $OM stakers will be rewarded with up to a 1.35x multiplier, depending on the amount staked and duration.
- Issuance of new $OM: To consistently secure the MANTRA Chain through validator incentives, this new proposal suggests the issuance of new $OM tokens at a deflationary rate. However, once MANTRA’s RWA ecosystem becomes fully sufficient, it will eventually transition to real yield staking.
- Total New Supply: The proposal also suggests that the current total supply of $OM be doubled from 888,888,888. But more importantly, the larger share of the new tokens (35%) will be allocated as rewards for existing $OM stakers. 34% will go to the ecosystem, 25% for the MANTRA Association and future initiatives, while 6% will be reserved for MANTRA’s Chain genesis airdrop and incentivized testnet.
Looking Into the Future
With the Real World Assets (RWA) market projected to grow into a $16 trillion-dollar industry, there is a massive opportunity for both tradfi and DeFi investors to participate in shaping the future of finance. MANTRA Chain is building an ecosystem that will accommodate this burgeoning space, and the transition of $OM into a DApp and Layer-1 token is part of this process.
“Although the community’s proposition to establish OM as the L1 token of the MANTRA Chain comes with its own set of challenges, we acknowledge the enthusiasm and support it has garnered, and we are fully dedicated to transforming this vision into a tangible reality.” reads the proposal.
The team also intends to launch more features this year, most notably, the Layer-1 mainnet and other decentralized financial products on the MANTRA Finance (MF) DEX module, including tokenized securities, money markets, private placement (PP), and stock lending.
