What changes have we made to our tokenomics?

In order to run a PoS chain, implementing a well designed incentive mechanism that incentivizes chain security is of paramount importance. Our team, community, key partners and investors are all aligned on the necessity of implementing the following key changes to OMʼs tokenomics:

• OMʼs migration to become the native L1 staking coin for MANTRA Chain. Historically it was an ERC20 token.

• The adoption of an inflationary tokenomic design with an uncapped supply. Previously OM had a hard cap supply.

• Total token supply increase from 888,888,888 to 1,777,777,777, meaning 888,888,888 new OM coins have been minted natively on MANTRA Chain however only a portion of these are currently in circulation.

Why are these changes requred by our ecosystem stakeholders?

• Sustainable staking rewards and long term network security: Validators need to be sufficiently incentivized to propagate new blocks and secure the network. With an inflationary uncapped token supply, this ensures our validators such as Google Cloud and Anchorage Digital are fully aligned with our long term vision of becoming the ledger of record for RWAs and can rest assured they will be continuously rewarded for their efforts to secure our network. A secure chain is the bedrock for our secured RWA deals.

• Incentivize long term OM holders: Both our existing and new OM holders will now be incentivized to delegate their OM to a validator for mainnet staking in order to earn additional OM rewards. This is a superior model to our prior one as it encourages long term holding and staking thereby maintaining OM price stability, with the additional benefit of maintaining long term network security.

• Successful fundraising to build our RWA chain and ecosystem: Given the constraints on the prior hardcap supply where 93% of OM were in circulation prior to our mainnet launch, expanding the token supply enabled us to successfully raise sufficient funding needed to execute our vision with key investors such as Brevan Howard, Laser Digital, Shorooq Partners and more.

• Attract top talent: The additional mint of 888,888,888 mainnet OM staking coins - as well as the proceeds we have successfully raised mentioned above - enables us to attract top blockchain developers and align their long term incentives with our vision via both OM and fiat compensation.

• Attract top RWA dapps: An uncapped inflationary tokenomics design will help us attract the top tier RWA projects to build on MANTRA Chain. If we were to continue with our prior hard cap token supply model with rouhgly 93% of OM in circulation, we would not be able to issue more OM to attract these dapps to build on our chain.

• Flexibility: An uncapped token supply allows MANTRA to adapt and sustain incentives over time. Token inflation can be adjusted dynamically via governance if economic circumstances change. This is not feasible with the prior hard cap supply.