Dear Sherpa Community,

MANTRA’s evolution as the leading RWA-focused ecosystem has reached a pivotal milestone. Since mainnet launch, over 250M OM - 28% of the ERC20 supply - has bridged home to MANTRA Chain, signaling a powerful shift in our ecosystem’s foundation. OM is coming home, and this is only the beginning.

To ensure our tokenomics align with the chain’s economic reality and accelerate our RWA ecosystem’s growth, we propose a decisive step: the full deprecation of ERC20 OM. This proposal outlines the steps to complete this transition, establishing MANTRA Chain as OM's definitive foundation while preparing for our MultiVM future. What began as an ERC20 token on Ethereum will become a native asset with global reach - one anchored to infrastructure purpose-built for real world assets.

Proposal Summary:

This proposal formalizes MANTRA Chain as OM’s singular home, retiring ERC20 OM while aligning tokenomics, liquidity, and security with our RWA-focused future. Voting YES is voting in favor of the following:

1. OM Token Standard Consolidation
   • Establish MANTRA Chain as the singular home for OM by deprecating ERC20 OM
2. Inflation Adjustment and Supply Hard Cap
   • Adjust inflation to 8%, leading to approximately 18% staking APR to accelerate migration
   • Implement a hard-capped Max Supply of 2.5B OM
3. Liquidity Consolidation
   • Consolidate EVM liquidity, deepening liquidity across MANTRA Chain
4. Network Security Enhancements
   • Reduce Association-run Validators from five to two
   • Implement Association Validator commissions
5. Ecosystem Development Support
   • Allocate and combine all previous OM tokens from Sybil slaying season, and ongoing team staking rewards into ecosystem development initiatives

Reason for Proposal:

Historical Context and Evolution of OM's Infrastructure

When OM launched on Ethereum on August 18, 2020, the network represented the only viable infrastructure for token deployment. Five years later, the blockchain industry has fundamentally transformed since the emergence of MANTRA Chain as purpose-built infrastructure for RWA tokenization.

As we approach MultiVM compatibility (beginning with EVM support), this proposal ensures proper foundational alignment by transitioning from Ethereum-based ERC20 OM to natively issued OM on MANTRA Chain. Effective January 15, 2026, all ERC20 OM tokens will be formally deprecated through a managed sunset process. Further details will follow.

Technical and Strategic Rationale

This transition represents not a retreat from multichain accessibility, but rather a strategic evolution of OM's architecture:

• Canonical Source Establishment: Native OM issuance on MANTRA Chain creates an unambiguous source of truth for supply verification and governance
• MultiVM Foundation: Enables secure wrapped asset deployment across all supported VMs while maintaining sovereign control through onchain governance
• Regulatory Alignment: Purpose-built chain infrastructure provides native compliance features for RWA requirements

Details on Proposed Changes:

1. OM Token Standard Consolidation

All ERC-20 OM tokens will be deprecated effective January 15, 2026. This managed sunset process will be coordinated closely with exchange partners with regular updates through MANTRA's official channels, culminating in bridge closure and reallocation of remaining non-bridged ERC20 OM to the MANTRA Chain Association from the Mirror Bucket. Post-deprecation, MANTRA Chain-native OM will serve as the sole canonical version, enabling MultiVM expansion while maintaining native-chain governance.

ERC20 OM Contract Address: 0x3593D125a4f7849a1B059E64F4517A86Dd60c95d

MANTRA Chain Mainnet OM Migration Link: https://mantra.zone/migration

Please note that any ERC20 OM tokens that are not bridged across the MANTRA Chain Mainnet by the effective date, January 15, 2026, will be considered forfeit, and their mainnet OM equivalent will be reclaimed by the MANTRA Chain Association for use at its sole discretion, including but not limited to reallocation for community initiatives or burning.

2. Inflation Adjustment and Supply Hard Cap

Markets evolve, and so must we. With the events that unfolded in April firmly behind us, today's environment demands recalibration - one that ensures validators can sustainably operate infrastructure while properly rewarding our community's commitment to native-chain participation.

To strengthen economic incentives on MANTRA Chain, we propose returning the inflation rate to its original 8% via a chain parameter update, which we intend to implement should the proposal be approved. This targets an approximate 18% staking APR (at today's bonded ratio) to accelerate these migration efforts. The inflation rate will undergo a scheduled review on January 15, 2026 - in accordance with the ERC20 deprecation timeline - to ensure continued alignment with ecosystem needs.

Additionally, in today’s proposal, we are recommending implementing a maximum supply cap of 2.5B OM, which will be enforced at the protocol level. This will require a Bank Module update, capping the supply of OM at 2.5B. This will occur subsequently should this proposal pass.

3. Liquidity Consolidation

Fragmented liquidity diminishes trading efficiency across our ecosystem. To resolve this, protocol-owned liquidity from Base, Polygon, and BNB Chain will migrate to MANTRA Chain immediately upon approval of this proposal, followed by Ethereum mainnet liquidity in Q4 2025. This consolidation creates deeper native pools on MANTRA Chain that deliver superior trade execution and streamlined access for DeFi users.

4. Network Security Enhancements

Validator operations will be streamlined through two key changes: First, in Q3 2025, the number of MANTRA Chain Association validators will be reduced from five to two, with their redistributed stake enhancing decentralization across all existing network validators. Second, commissions will be activated on MCA validators by the end of 2025 to incentivize broader community delegation. These measures maintain robust security while optimizing network performance and decentralization.

5. Ecosystem Development Support

To accelerate ecosystem growth, we propose to redirect two dedicated funding streams to the ecosystem permanently: (i) all OM reclaimed through Sybil-slaying measures, plus (ii) ongoing staking rewards from the Team and Core Contributors' allocation. These resources will be deployed to fund three critical initiatives: MultiVM application development grants to expand our technical capabilities, RWA issuer onboarding programs to grow our asset base, and user incentives designed to drive adoption of tokenized asset products. This structured approach ensures that all community participants benefit from these redirected resources and allows our ecosystem to thrive.

Conclusion

The measures outlined in this proposal mark a decisive step forward in MANTRA Chain’s evolution as the premier destination for real world asset tokenization. By establishing native OM as the canonical standard for our ecosystem utility token, optimizing liquidity and security, and aligning incentives with long-term growth, we are not just adapting to change; we are establishing a solid foundation for MANTRA’s next chapter.

The migration of OM to its sovereign chain is more than a technical upgrade; it is a strategic commitment to regulatory clarity, capital efficiency, and institutional-grade infrastructure. With these changes, we empower developers, asset issuers, and users to build and interact with RWAs in a compliant, high-performance environment. One that scales via MultiVM while remaining anchored to MANTRA Chain’s purpose-built design.

This proposal reflects the collective vision of our community, as evidenced by the ~250M OM that has already migrated hOMe. Now, we supercharge that momentum. Together, we will ensure OM’s full potential is realized, not as a token bound to legacy infrastructure, but as the native asset of a chain designed to redefine finance.

The future of RWAs starts here. Vote to make it happen.