Oraichain token burn approved as governance backs burning 500,000 ORAI tokens, cutting supply and strengthening ORAI value capture
Author: Kritika Gupta
27th January 2026- The Oraichain token burn is now underway after Oraichain approved a major supply reduction that will permanently burn 500,000 ORAI tokens, following the passing of Governance Proposal #319. This burn represents the first phase of a wider plan to remove 1,000,000 ORAI from supply. The burn funds have already been deposited on-chain, and the community is currently voting through Proposal #323 to formally execute the burn step.
As of January 27, 2026, ORAI trades near $0.43, and the update has triggered renewed attention from market participants watching for a potential supply-driven rebound. However, while burns often support positive sentiment, price impact will still depend heavily on adoption and demand growth.
High Signal Summary For A Quick Glance
Z
@crypto_zacho
ORAICHAIN Team Announces 500k Token Burn 🔥 Already super scarce supply now getting even scarcer 19.77M -500K Sitting at 6M Market Cap 43 cents is a GIGA discount for $ORAI 🤯 Like & Subscribe for more Orai content 🫡 https://t.co/Aoh48q1co2
01:14 AM·Jan 27, 2026
Finanzstammtisch
@Finanzstamm
@oraichain Big step. Now we just need more attention on the Quant Terminal. A lot of people remember ORAI from the early days, but have no idea how much the ecosystem has evolved since then. Time to showcase the product with good marketing.
500,000 ORAI - set to be permanently burned. Following the approval of Proposal #319, 500,000 ORAI will be removed from the total supply, marking the first half of the 1,000,000 ORAI burn plan. The full amount has already been deposited on-chain: https://t.co/Ijbrrg3EbI 🗳️ To https://t.co/jys1KeFXty
12:44 PM·Jan 26, 2026
SandmanAvax🔺
@SandmanAvax
@oraichain This is big, considering total supply is very low! Good job!
500,000 ORAI - set to be permanently burned. Following the approval of Proposal #319, 500,000 ORAI will be removed from the total supply, marking the first half of the 1,000,000 ORAI burn plan. The full amount has already been deposited on-chain: https://t.co/Ijbrrg3EbI 🗳️ To https://t.co/jys1KeFXty
12:20 PM·Jan 26, 2026
This burn originates from Proposal #319, titled “ORAI Tokenomics 2026,” which outlines a broader restructuring of Oraichain’s ecosystem economics. Most importantly, the proposal aims to consolidate the platform around ORAI as the primary value capture token, reducing legacy token overhang and simplifying distribution and incentives.
In addition, the proposal assigns about 1,000,000 ORAI for conversion-related restructuring, and the burn mechanism acts as the deflationary lever to tighten supply as the ecosystem shifts toward ORAI-only alignment.Â
Oraichain has previously used burns as part of its tokenomics strategy, so this move fits within a longer pattern rather than a one-off event. The largest burn occurred on December 22, 2020, when the project burned roughly 63 million ORAI, removing about 73% of the initial total supply and reducing the supply to around 23 million ORAI.
Later, Oraichain also executed additional burns, including 258,449.4 ORAI from the team allocation on March 28, 2021, followed by a further 3 million ORAI reduction from team, advisors, and foundation reserves on June 23, 2021.
Historically, the market reacted positively to the 2020 burn cycle. ORAI rallied from around $1 to above $20 by early 2021 and later reached an all-time high near $101.65 in February 2021. Although broader bull market conditions clearly amplified that rally, the aggressive supply reduction helped reinforce scarcity narratives and investor conviction.
Key milestones related to this development
Oraichain burns roughly 63M ORAI, removing about 73% of initial supply and reducing total supply to around 23M ORAI.
Oraichain burns 258,449.4 ORAI from the team allocation as part of ongoing tokenomics adjustments.
Oraichain reduces supply by a further 3,000,000 ORAI from team, advisors, and foundation reserves.
ORAI rallies from around $1 to above $20 and later reaches an all-time high near $101.65 in February 2021 amid broader bull market conditions.
ORAI Tokenomics 2026 is approved, aiming to consolidate the ecosystem around ORAI and reduce legacy token overhang.
Community voting is underway to proceed with burning 500,000 ORAI as Phase 1 of the planned 1,000,000 ORAI reduction.
After Proposal #323 concludes, Oraichain can execute the on-chain burn of 500,000 ORAI if the vote passes.
Oraichain may burn an additional 500,000 ORAI to complete the full 1,000,000 ORAI planned supply reduction.
The proposed Oraichain token burn strengthens Oraichain’s deflationary positioning at a time when the project aims to expand adoption in AI-powered DeFi and quantitative execution systems. Currently, the total supply sits near 19.8 million ORAI, with circulating supply around 19.5 million ORAI. Therefore, removing 500,000 ORAI reduces supply meaningfully, and completing the full 1,000,000 ORAI burn plan increases that effect further.
Additionally, Oraichain frames ORAI as the ecosystem’s core asset tied directly to usage. Its AI agent infrastructure, including products like Distilled AI and Agents.land, supports a broader strategy where activity generates fees and network demand. As a result, reducing supply while usage rises could improve scarcity dynamics and strengthen long-term value capture.
Looking forward, the burn supports Oraichain’s narrative as an AI-focused Layer 1 designed for data economy infrastructure and quantitative systems. Community discussion on X has leaned optimistic, with many users emphasizing the scarcity effect. They also point to the potential upside if adoption continues accelerating. Some traders also link this update to hopes for higher visibility and additional exchange momentum.
However, the final impact still depends on whether Oraichain can sustain real growth in agent volume, DeFi integration, and AI-blockchain product adoption. If the platform continues building usage and the community completes Proposal #323 successfully, this burn could function as a strong sentiment catalyst and a concrete step toward cleaner tokenomics.
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