Mantra, a blockchain project specializing in real-world assets (RWAs), is undergoing a significant operational restructuring after what its leadership calls the most difficult year in the company's history. The move, announced by CEO John Patrick Mullin, includes job cuts across multiple teams and a shift to a leaner, more capital-efficient structure.
The restructuring follows a catastrophic decline in the value of Mantra's native OM token. According to CoinGecko data, OM reached an all-time high of $8.99 on February 23, 2025, before collapsing sharply to $0.59 by April 15. The token remains approximately 99% below its pre-crash peak. CEO Mullin previously linked the April crash to aggressive leverage policies on centralized exchanges, warning of systemic risks from liquidation cascades.
"I take full accountability for these decisions and for the path that led us here," Mullin stated. "I know this is an incredibly challenging situation, particularly for those directly impacted, for their families, and for everyone at MANTRA. I'm especially sorry to those leaving us." He clarified that while downsizing would lower expenses, the core motivation was a strategic reset to sharpen execution and concentrate resources on long-term opportunities.
The company's financial strain is underscored by a dramatic 81% decline in its Total Value Locked (TVL), falling from a peak of $4.51 million in February 2025 to approximately $860,000. This steep drop has severely impacted protocol fee revenue. Mullin acknowledged the project's cost base had become unsustainable in current market conditions, citing the April 2023 market crash, a prolonged downturn, and intensified competition as compounding factors.
Despite the cuts, Mullin emphasized commitment to the core RWA strategy. "This hasn't changed our core RWA strategy in the slightest. If anything we are doubling down on it," he told Cointelegraph, noting prioritization of the layer-1 chain, mantraUSD stablecoin, and Mantra Finance.
The layoffs disproportionately affect business development, marketing, human resources, and other support functions, as the company focuses resources on core technical execution. The restructuring also occurs amidst reported tensions with crypto exchange OKX. In December, Mullin urged OM holders to withdraw tokens from OKX, alleging inaccurate information related to a token migration—a claim OKX disputed.
Following the initial token crash, Mantra implemented several governance and transparency measures, including validator decentralization efforts, a real-time tokenomics dashboard, and the burning of 150 million staked OM tokens to reduce supply.
