Mantra Restructures Workforce Following OM Token Collapse

Mantra, a blockchain project, is undergoing significant changes after what its leaders termed one of the most challenging periods in its history. This shift comes in the wake of a serious decline in its OM token and extended market pressure, prompting the company to reevaluate its budget and priorities.

Key Takeaways

Mantra is restructuring due to significant challenges following the OM token's collapse.
Job reductions will impact several teams, focusing on aligning expenditures with current market conditions.
The company aims to adopt a leaner operational model to navigate future market volatility and sustain its long-term vision.

Mantra Restructures Workforce Following OM Token Collapse

On Wednesday, John Patrick Mullin, CEO and co-founder of Mantra, announced plans for staff reductions and a transition to a more streamlined operating model as the company prepares for 2026.

The decision follows a year characterized by aggressive growth, a sharp decline in token value, and a sustained decline in market sentiment regarding real-world asset tokenization.

Rethinking Operations Amid Token Decline

In a public statement, Mullin explained that the restructuring would entail job reductions across various teams, particularly in business development, marketing, human resources, and support roles.

He emphasized this decision was necessary to align expenditures with current economic conditions, as the company's financial structure was unsustainable given the deteriorating market landscape.

Mullin noted that the focus moving forward would be on disciplined action, resource optimization, and capital efficiency, with the aim of stabilizing and rebuilding the organization.

As the company looked ahead to 2024 and early 2025, Mantra had ambitious plans for growth and substantial investments to enhance its infrastructure for RWA (real-world assets), its blockchain, and its overall ecosystem.

These efforts positioned Mantra as a leading Layer-1 blockchain focused on tokenized real-world assets. However, Mullin cited a combination of adverse events in April 2025, increased competition, and an extended market downturn that ultimately forced the company to shift strategies.

On April 13, the OM token experienced a drastic drop from approximately $6.30 to below $0.50 in a low-liquidity weekend trading session, resulting in a staggering loss of over $6 billion in market capitalization within just 24 hours and raising concerns across the DeFi sector.

At that time, Mantra denied any wrongdoing, attributing the crash to forced liquidations by a significant token holder on a centralized exchange.

Image Related to the Crisis

According to data from CoinGecko, the OM token reached a peak of $8.99 in February 2025, only to plummet to as low as $0.59 by mid-April, trading approximately 99% below its highest point.

Aiming for a Fresh Start Post-Restructuring

In response to the token collapse, Mantra implemented several measures to rebuild confidence. Mullin shared plans to burn 150 million OM tokens that were allocated to him at the mainnet launch, completing the unstaking process in April 2025.

Additionally, the company introduced a token buyback program and a public dashboard for tokenomics as part of a broader initiative to improve transparency.

The project's difficulties were later exacerbated in 2025 due to a public disagreement with cryptocurrency exchange OKX regarding the timing and terms of OM’s token migration.

Mullin accused the exchange of providing incorrect migration timelines, urging users to withdraw their tokens and rely on official communication channels from Mantra. This conflict added further uncertainty for holders already reeling from the April downturn.

Given these challenges, Mullin stated that the restructuring aims to extend Mantra’s operational runway and refocus on execution rather than growth.

Looking towards the future, Mullin explained that Mantra would adopt a more disciplined approach, striving for faster delivery and pushing towards a sustainable and profitable future.

He affirmed the company's ongoing commitment to its RWA strategy, believing that a leaner structure would better enable it to navigate market volatility and fulfill its long-term vision as the next phase of cryptocurrency adoption unfolds.