Mantra Seeks to Shift OM Token From ERC-20 to Native Blockchain

Mantra has put forward a major plan for its OM token, seeking to shift it completely from Ethereum’s ERC-20 standard to its own Mantra Chain. Shared on X on August 20, the proposal lays out a phased approach to retire ERC-20 tokens and centralize activity on the native platform.

Though still in the planning stage, the initiative is described as an important step for governance, liquidity management, and market transparency. Moving OM to a single blockchain is expected to resolve user confusion and strengthen the ecosystem’s operational framework.

OM Migration to Native Chain

OM currently exists as both an ERC-20 token on Ethereum and a native token on Mantra Chain. This has caused fragmented liquidity, uneven staking, and some confusion for users. The governance proposal plans to move all OM to Mantra Chain and reclaim any ERC-20 tokens not migrated by the deadline. These reclaimed tokens will be used to support ecosystem growth instead of staying idle.

The plan also focuses on improving liquidity across networks. First, Base, Polygon (POL), and BNB Chain will be addressed, with Ethereum later this year. Trading in native pools should make liquidity stronger and provide a smoother experience for OM holders. This also helps avoid price gaps and slow transactions caused by cross-chain issues.

The migration aims to make things simpler for users. By removing confusion about which OM token to use, traders and stakers can feel more confident. While the process needs coordination, it should lead to a more active community and stronger governance.

Optimizing OM for Stability and Security

Along with the migration, Mantra is updating its tokenomics, which could affect staking and supply. The plan suggests bringing back an 8% inflation rate, potentially raising staking rewards to about 18% APR. A hard cap of 2.5 billion OM will also be set, with a review of inflation planned for early 2026. These changes aim to support growth while keeping supply predictable.

Validator rules will change as well. The Mantra Chain Association plans to cut active validators from five to two in the third quarter of 2025. Stakes will be redistributed to improve decentralization, and commission fees for MCA-run validators will start later. This is meant to encourage community involvement and responsible network management.

Security remains important. By putting all OM tokens on a single blockchain, the project reduces risks from multiple token standards. With new validator rules and staking incentives, Mantra aims for a strong and reliable network. For holders, this could mean steadier rewards and more trust in governance.

Strategies for MultiVM Growth

The migration is part of Mantra’s broader MultiVM strategy, which focuses on building a regulated platform for tokenizing real-world assets. By introducing a native token, the chain can support use cases beyond simple trading, such as fractionalized ownership of assets and other decentralized finance applications. This approach reflects industry trends where interoperability and regulatory compliance are becoming increasingly crucial.

Recent achievements highlight the timing of this move. Mantra recently marked its fifth anniversary, added Binance as a validator, and successfully bridged over 250 million OM tokens to the chain. These developments show tangible progress and establish a solid foundation for the migration. The project is effectively consolidating both technical capabilities and community support, preparing for a more strategic long-term path.

Shifting to a native token is expected to improve market efficiency while supporting future growth. A single-chain OM token will facilitate new applications, simplify partnerships, and increase confidence among institutional investors interested in tokenized real-world assets.

What’s Next for Mantra?

Mantra wants to move OM to its native blockchain to unify the ecosystem, strengthen governance, and set the stage for future growth. Token holders can expect clearer utility, steadier rewards, and a smoother trading experience.

While challenges remain, the plan shows Mantra is focused on the future. By addressing liquidity gaps, enhancing security, and preparing for MultiVM expansion, OM’s move could become an example for other projects handling cross-chain complexity.