Mantra has unveiled a new governance proposal to fully migrate its OM token from Ethereum’s ERC-20 standard to its own native blockchain, Mantra Chain, by January 2026. The move aims to streamline tokenomics, unify liquidity, and boost on-chain activity as the project pushes deeper into real-world asset tokenization.
ERC-20 to Be Sunset by January 2026
The plan, announced on August 20, sets January 15, 2026 as the official deadline for the transition. After that date, ERC-20 OM tokens will no longer be supported. Any tokens left unbridged will be reclaimed by the Mantra Chain Association (MCA) and later redeployed to support ecosystem growth.
Mantra explained that consolidating around a single token standard will eliminate confusion, simplify utility, and strengthen governance across its ecosystem.
Liquidity Consolidation Across Chains
The migration process will begin with liquidity pools on Base, Polygon, and BNB Chain, before wrapping up Ethereum support later this year. By shifting liquidity to native pools on Mantra Chain, the team expects to create deeper trading liquidity and smoother markets for OM.
Adjustments to Tokenomics and Governance
Alongside the migration, Mantra is proposing several changes to its tokenomics and validator structure:
- Inflation: An 8% inflation rate will be reinstated, pushing staking rewards to roughly 18% APR.
- Supply Cap: A hard cap of 2.5 billion OM will be enforced at the protocol level.
- Validator Changes: MCA will cut its active validators from five to two by Q3 2025, redistributing stake to improve decentralization.
- Validator Fees: By year-end, commission fees will be applied to MCA-run validators to encourage greater community-led validation.
The team noted that inflation and tokenomics will be reviewed again in early 2026.
A Step Toward MultiVM and Real-World Assets
Mantra says the migration is a strategic step toward its MultiVM roadmap, which is designed to support regulated real-world asset (RWA) tokenization. With OM becoming fully native, Mantra aims to position itself as a leading blockchain for RWA issuance and compliance-driven adoption.
The proposal comes on the heels of Mantra’s fifth anniversary and the recent addition of Binance as a validator. Already, more than 250 million OM tokens have been bridged to Mantra Chain — a milestone the team sees as proof of community readiness for full migration.
Bottom Line
By unifying liquidity, refining tokenomics, and reinforcing governance, Mantra is betting that a fully native OM token will unlock deeper utility and strengthen its role in the RWA ecosystem. The final decision will rest on community governance votes in the months ahead.
