What is OM Coin? The Complete Guide to the Mantra Dao (OM) Project

In the article below, let’s join Finance Solutes in exploring a typical DeFi project – Mantra Dao (OM) – a potential decentralized financial lending platform with core functionalities in staking and lending. So what is the main operating mechanism of Mantra Dao? What information should investors know about OM – the native token of the platform?

1. WHAT IS MANTRA DAO (OM)?

Mantra Dao is a decentralized financial platform with core functionalities specifically in staking, lending, and decentralized governance. The project is being built on the RioChain blockchain and will be connected to Polkadot. It is designed to operate as an ecosystem for Web 3.0.

The platform uses the OM coin as its native utility token, serving purposes such as staking, lending, and governance. While the project plans to transition to the Polkadot network, the token was initially launched on the Ethereum blockchain.

MANTRA DAO was first announced in June 2020, and its first feature – staking – went live in October 2020.

2. HOW MANTRA DAO WORKS

2.1. Staking

Mantra Dao supports non-custodial staking services ranging from short-term to mid-term, initially for assets within the Polkadot ecosystem, including: DOT, KSM, and OM. Other cryptocurrencies such as RING, PCX, and ACA are also on the list of additions.

Mantra Dao is expected to expand staking support to other DPoS assets such as: XTZ, TRX, ADA, EOS, and ELA. In addition, the project plans to introduce custodial staking services for other PoS assets, such as ETH 2.0 and DASH.

2.2. Lending

Mantra Dao’s lending products are being developed in three phases:

In Phase 1, the project will build upon existing open-source DeFi lending protocols with cross-chain bridges, allowing users to access lending interest rates for assets on the Ethereum platform.

In Phase 2, third-party lending service providers will be introduced to offer access to high-yield savings options and stablecoin loans.

In Phase 3, a proprietary lending algorithm and stablecoin system will be developed, similar to MakerDAO, but with cross-chain collateral instead of being solely Ethereum-based. By using tokenized derivative collateral assets, such as omDOT, users will have the opportunity to earn staking rewards even while borrowing stablecoins.

2.3. Mantra Pool

Mantra Pool is a crypto savings game that allows users to participate for a chance to win staking rewards from the Mantra Dao Foundation. Every week, the protocol randomly selects winners, and users can join the Mantra Pool in two ways:

• Burning OM coins, where 1 ticket equals 1 OM coin burned.

• Entry tickets are also allocated based on the user’s Karma level.

Mantra Pool is funded with 25% of all staking rewards generated from the assets of the Mantra Dao Foundation. These rewards are distributed in their native assets, and users have the option to convert all rewards into OM coins if they wish.

2.4. Karma

The Karma protocol is developed as a reward mechanism for members who contribute to the Mantra Dao ecosystem. The more participants involved, the more decentralized and autonomous Mantra Dao becomes. Karma serves as a reputation-based protocol designed to incentivize and reward positive engagement within the organization.

The more Karma a member accumulates, the more benefits they receive within the ecosystem. The Karma protocol features 10 levels, each unlocking different incentive services, ultimately allowing participants to increase their OM holdings, reduce costs, and earn more rewards. In addition to the Karma points each user earns, they must also meet specific OM staking requirements to claim all rewards for a given level.

3. PROJECT HIGHLIGHTS

According to Mantra Dao, several announced features make the project unique:

• First, it is being built on RioChain and will be connected to Polkadot, which it describes as a “next-generation blockchain.”

• Second, it offers multi-layered staking, borrowing, and lending across both its own platform and others such as Cosmos (ATOM) and Terra (LUNA).

• Third, it operates the Mantra Pool funded by 25% of the platform’s staking rewards.

• And finally, it employs a Karma protocol that scores network participants based on their contributions, providing high scorers with increased benefits.

The Mantra Dao ecosystem is powered by the OM coin, used for DAO governance, staking, and lending. OM holders receive an estimated 88.8% annual reward for staking on the platform. OM was launched as an ERC-20 token, but the platform has plans to transition to the Polkadot network.

As outlined in its official report, Mantra Dao’s business plan focuses on earning interest on loans, staking OM coins, operating staking as a fee-based service for deposited assets, and offering B2B access to its products.

4. ROADMAP

Check the latest project roadmap at: https://www.mantradao.com/#roadmap

5. WHAT IS THE OM COIN?

Mantra Dao and the Mantra Protocol can only function as a decentralized autonomous organization (DAO), governed by the community, through the use and integration of the OM coin. OM coins are the entry point for individuals to become members of Mantra Dao and are what grant them the right to participate in the organization’s operations.

OM coins provide Mantra Dao members with governance and voting rights, access to collateralized loans and compound interest, as well as the ability to participate in the MANTRA POOL savings games.

OM coins were initially made available to the public through Mantra Dao’s Initial Membership Offering (IMO). Participants in this offering were granted OM coins and access to the MANTRA DAO platform, where they could enjoy a variety of financial services and privileges within the ecosystem.

OM Coin price on CoinMarketCap as of May 9, 2022:

5.1. Basic Information about OM Coin

• Token Name: Mantra Dao
• Ticker: OM
• Blockchain: Ethereum
• Token Standard: ERC-20
• Token Type: Utility, Governance
• Total Supply: 888,888,888 OM
• Circulating Supply: 454,800,000 OM

5.2. OM Coin Distribution Plan

MANTRA DAO has a total token supply of 888,888,888 OM. Of this amount, 75.6 million OM (8.5%) were sold during the pre-sale and the “Initial Membership Offering (IMO)” which began in July 2020. An additional 80 million OM (9%) were allocated for private distribution, with a six-month purchase period.

The remaining tokens are distributed as follows:

• 155.6 million OM coins (17.5%) for the team and advisors, with 1/8 being released every 30 days.

• 266.7 million OM coins (30%) for staking rewards, most of which will be released through a decaying non-linear growth function over approximately five years.

• 111.1 million OM coins (12.5%) for referral and sponsorship programs, with the majority released on a rotating basis via a linear model over five years.

• 88.9 million OM coins (10%) for reserves, most of which will be released on a rotating basis via a linear model over five years.

• 111.1 million OM coins (12.5%) for grants to fund protocol development initiatives.

6. DEVELOPMENT TEAM

MANTRA DAO was developed as a project of RioDeFi, the blockchain technology development company behind RioChain, where co-founders John Patrick Mullin and Will Corkin serve as advisors. Both initiated the project as a decentralized autonomous organization together with colleague Rodrigo Quan Miranda.

Mullin, Corkin, and Miranda, along with RioDeFi CEO James Anderson and Chief Marketing Officer Stephane Laurent Villedieu, formed the founding council of MANTRA DAO.

7. SUMMARY

The above article has compiled the fundamental information about the DeFi platform Mantra Dao and its native token – OM coin. Hopefully, this article can support readers in understanding the project before making any investment decisions.