MANTRA $OM has seen a significant rise in value, gaining over 100% in the past month. This increase has drawn attention to the project, with many questioning what MANTRA is, how it works, and what is driving this growth.
MANTRA is focused on bringing real-world assets onto the blockchain in a compliant manner. This article breaks down the blockchain’s purpose, how it operates, the token$OMics behind $OM, and the key reasons for its recent price increase.
What is MANTRA?
MANTRA is a blockchain designed to facilitate the tokenisation of real-world assets such as real estate, equities, commodities, and bonds.
Source: Mantra
The aim is to create an efficient and legally compliant framework that allows these assets to be transferred, settled, and traded on-chain.
While many discussions around tokenisation have taken place, real-world adoption has remained slow due to regulatory concerns and technological limitations.
MANTRA is tackling these challenges by building an open blockchain where regulated applications can operate.
Historically, financial institutions exploring blockchain technology have opted for private blockchains, hoping to maintain control over their networks.
However, these closed systems have struggled to gain traction due to their lack of interoperability and limited access to liquidity.
MANTRA offers a different approach by developing a permissionless blockchain that allows institutions to integrate compliance at the application level rather than at the protocol level.
This means financial institutions can benefit from blockchain technology while meeting regulatory requirements.
A key aspect of MANTRA’s strategy is recognising the inefficiencies in how capital moves between blockchain networks and traditional financial systems. Many investors are forced to transition between digital and traditional assets, which adds unnecessary friction.
MANTRA aims to solve this by offering a regulatory-friendly environment where on-chain assets retain the stability, liquidity, and security of their off-chain counterparts.
The focus is on making blockchain technology practical for financial institutions while ensuring that transactions are efficient and compliant.
How the MANTRA Blockchain Works
The MANTRA blockchain operates as a permissionless network designed to support real-world asset tokenisation while allowing compliance to be enforced through individual applications.
Rather than embedding regulatory controls directly into the consensus mechanism, MANTRA enables developers to integrate compliance solutions at the application layer through modular smart contracts.
Source: Mantra Whitepaper
This provides flexibility for institutions that need to meet legal requirements while using blockchain technology.
One of the primary components of MANTRA is its Digital Identity System (MANTRA DID). This system assigns users a soulbound NFT, which serves as a verified digital identity.
This ensures that transactions involving regulated assets comply with identity verification standards, making it easier for financial institutions to engage with the network.
Source: Mantra
To further support compliance, MANTRA has implemented MANTRA Guard, a permissioned system that enforces access restrictions based on regulatory requirements.
MANTRA also features a Token Service (MTS), allowing businesses and financial institutions to issue and manage tokenised assets. This includes tools for minting, burning, seizing, and freezing assets, ensuring full control over financial instruments issued on the blockchain.
Additionally, MANTRA supports cross-chain compatibility through Inter-Blockchain Communication (IBC), enabling tokenised assets to be transferred across multiple networks while remaining compliant with jurisdictional regulations.
For trading, MANTRA operates a Decentralised Exchange (MANTRA DEX), which introduces whitelisted liquidity pools to ensure that assets and participants meet compliance standards.
This approach allows financial institutions to engage in decentralised finance while maintaining regulatory safeguards.
Another notable feature is the Liquidity Efficient Emissions Protocol (LEEP), which is designed to address liquidity challenges associated with tokenised real-world assets, ensuring that they remain tradeable on both blockchain networks and traditional financial markets.
By combining these elements, MANTRA provides a blockchain environment where real-world assets can be issued, managed, and traded in a compliant manner.
This structure is aimed at bridging the gap between decentralised and traditional finance while addressing key institutional concerns around regulation and security.
$OM Token Economics and Allocation
The $OM token plays a central role in securing and maintaining the MANTRA blockchain. Initially launched as an ERC-20 token on Ethereum in 2020, $OM was originally designed as a DeFi token.
However, as MANTRA expanded into a full Layer 1 blockchain, $OM transitioned into the network’s native staking asset. This shift aligned the token’s utility with the broader vision of supporting real-world asset tokenisation.
Source: Coingecko
A significant change in $OM’s token$OMics was the transition from a fixed supply model to an inflationary design. Originally, $OM had a hard cap of 888,888,888 tokens, but this was increased to 1,777,777,776 to support the blockchain’s staking and security requirements.
The new model includes an annual inflation rate of 3%, with 60% allocated to staking rewards and 40% directed towards ecosystem development. This ensures that validators are incentivised to secure the network while providing funds for long-term growth.
Source: Mantra’s Whitepaper
The token supply was allocated as follows:
- 50% to legacy $OM token holders, ensuring a smooth transition to the new blockchain
- 17.5% as an upgrade incentive for users migrating their tokens to the mainnet
- 12.8% for the MANTRA Association, funding ecosystem growth and development
- 16.9% to core contributors, including developers, advisors, and early supporters
- 5.6% for mainnet pre-seed investors
- 5.1% for mainnet seed investors
- 2.8% for airdrops and incentivised testnet participation
This structured allocation ensures the network remains secure, provides incentives for long-term adoption, and supports continued development within the MANTRA ecosystem.
Why the Price of $OM Has Been Increasing
$OM’s recent price increase can be attributed to several factors, the most significant being the approval of a Virtual Asset Service Provider (VASP) license for Dubai’s regulatory authority VARA.
This license allows MANTRA to operate as a fully regulated virtual asset exchange, providing brokerage and investment management services.
This regulatory milestone has strengthened investor confidence, as it demonstrates MANTRA’s ability to comply with international financial standards.
Another key factor is the launch of the RWAccelerator program in partnership with Google Cloud. This initiative supports startups focused on real-world asset tokenisation, providing funding, mentorship, and access to AI-powered tools.
The involvement of Google Cloud has reinforced MANTRA’s credibility and positioned it as a leading blockchain for RWA development.
Market trends have also played a role in $OM’s price increase. The demand for real-world asset tokenisation has been growing as regulatory frameworks become clearer.
Institutional investors are looking for compliant solutions to bring financial products on-chain and MANTRA’s infrastructure provides a strong foundation for this transition.
The combination of regulatory approval, strategic partnerships, and increasing adoption of RWA tokenisation has contributed to $OM’s recent price performance.
The project’s ability to position itself as a compliant and scalable blockchain has attracted more interest from investors and developers.
Conclusion
MANTRA has positioned itself as a blockchain designed for real-world asset tokenisation with a strong focus on regulatory compliance. The network’s infrastructure allows financial institutions to issue and trade assets on-chain while meeting legal requirements.
Recent regulatory approvals and strategic partnerships have increased confidence in the project, contributing to $OM’s price growth.
As the adoption of RWA tokenisation continues to expand, MANTRA’s ability to offer a compliant and scalable solution will play a key role in its long-term success.