What is Coin OM? All About Mantra Dao (OM) Project

In the article below, let’s explore with Finance Solutes a typical DeFi project – Mantra Dao (OM) – a promising decentralized finance platform with core functions of staking and lending. So, what is the main operating mechanism of Mantra Dao? What essential information should investors know about OM coin – the native token of the platform?

1. WHAT IS MANTRA DAO (OM)?

Mantra Dao is a decentralized finance platform with key functions specifically including staking (depositing), 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 a utility token called OM coin, which is used for staking, lending, and governance purposes. While the project plans to migrate 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 DOES MANTRA DAO WORK?

2.1. Staking

Mantra Dao supports non-custodial staking services for short- to mid-term periods, starting with assets from the Polkadot ecosystem including: DOT, KSM, and OM. Other cryptocurrencies such as RING, PCX, and ACA are also on the list for future support.

It is expected that Mantra Dao will add more DPoS assets to its staking support list, including: XTZ, TRX, ADA, EOS, and ELA. Additionally, 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 developed in three phases:

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.

Phase 2: Third-party lending service providers will be onboarded to offer access to high-yield savings options and stablecoin loans.

Phase 3: A proprietary lending algorithm and stablecoin system will be developed, similar to MakerDAO, but using cross-chain collateral instead of Ethereum-only assets. By using tokenized derivative assets as collateral, 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. Each week, the protocol randomly selects winners, and users can enter the Mantra Pool in two ways:

• Burning OM coins, where one entry ticket equals one OM coin burned.

• Earning entry tickets based on the user’s Karma level.

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

2.4. Karma

The Karma protocol was developed as a mechanism to reward members for their contributions to the Mantra Dao ecosystem. The more members participate, the more decentralized and autonomous Mantra Dao becomes. Karma is a reputation system designed to incentivize and reward positive community engagement.

The more Karma a member has, the more benefits they receive within the ecosystem. The Karma protocol includes 10 tiers, each unlocked with different incentive services, ultimately offering members greater opportunities to increase their OM coin holdings, reduce costs, and earn rewards. In addition to the amount of Karma each user earns, users must also meet specific OM staking requirements to receive all rewards associated with a given tier.

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-tier staking, borrowing, and lending both on its own platform and on other platforms such as Cosmos (ATOM) and Terra (LUNA).

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

• And finally, it uses a Karma protocol that scores network participants based on their contributions, providing higher-ranked users with increased benefits.

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

As stated in its official whitepaper, Mantra Dao’s business model focuses on earning interest from loans, staking OM coins, operating staking-as-a-service for deposited assets, and providing B2B access to its products.

4. ROADMAP

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

5. WHAT IS 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 OM coin. OM coin serves as the entry point for individuals to become members of Mantra Dao and grants them the right to decide how the organization operates.

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

The initial distribution of OM coins to the public will be conducted through Mantra Dao’s Initial Membership Offering (IMO). Participants in this offering will receive OM coins and gain access to the MANTRA DAO platform, where they can benefit from a variety of financial services and perks within the ecosystem.

OM Coin Market Cap price 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)” that began in July 2020. An additional 80 million OM (9%) were allocated for private distribution, with a six-month vesting 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 in a non-linear decreasing growth curve over approximately five years.

• 111.1 million OM coins (12.5%) for referral programs, most of which will be released in a linear vesting model over a period of 5 years.

• 88.9 million OM coins (10%) for reserves, most of which will be released on a linear vesting basis over 5 years.

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

6. DEVELOPMENT TEAM

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

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

7. SUMMARY

The article above has summarized the basic information about the DeFi platform Mantra Dao and its native coin OM. We hope that this article helps readers gain an understanding of the project before making any investment decisions.