Mantra has introduced a new governance proposal that would shift its OM token entirely from Ethereum’s ERC-20 standard to the native Mantra Chain. The plan, announced on August 20 via X (formerly Twitter), lays out a managed transition process that will formally phase out ERC-20 OM tokens by January 15, 2026.
We just shared our proposal to bring $OM hOMe 🕉️
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) August 20, 2025
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
Why the Migration Matters
Currently, OM exists in two forms—one on Ethereum and another issued directly on Mantra Chain. The proposal seeks to unify these versions into a single native token. Any ERC-20 OM tokens left unbridged after the deadline will be reclaimed by the Mantra Chain Association and later redeployed to support ecosystem development.
Mantra says the move will streamline governance, simplify token utility, and reduce confusion among users. To ensure market stability, liquidity across Base, Polygon, and BNB Chain will migrate first, followed by Ethereum later this year. By consolidating trading into native pools, the team expects deeper liquidity and a more efficient market for OM.
Updates to Tokenomics and Governance
Alongside the migration, Mantra has proposed a set of changes to OM’s tokenomics. These include:
- Restoring an 8% inflation rate, bringing staking rewards to around 18% APR.
- Introducing a hard supply cap of 2.5 billion OM at the protocol level.
- Scheduling an inflation review for early 2026.
The governance proposal also outlines validator adjustments. The Mantra Chain Association will reduce its active validators from five to two in the third quarter of 2025, redistributing stake to improve decentralization. By the end of the year, MCA-run validators will also introduce commission fees to encourage stronger community participation.
Looking Toward a MultiVM Future
Mantra has positioned this migration as part of its broader MultiVM roadmap. By consolidating OM on its native chain, the project aims to strengthen its role as a regulated platform for real-world asset tokenization—a sector it has been building toward since its inception.
The proposal follows Mantra’s fifth anniversary and its addition of Binance as a validator. With more than 250 million OM already bridged to the chain, the team describes the migration as a natural step toward consolidation and long-term growth.
