MANTRA Cuts Staff Amid Restructuring as OM Token Remains 99% Below Peak

MANTRA, a blockchain project focused on real-world assets (RWAs), is undergoing restructuring amid staff cuts, as the OM token continues to trade approximately 99% below its February 2025 peak. The company's CEO, John Patrick Mullin, acknowledged the need for a leaner, more capital-efficient structure, citing an unsustainable cost model amid prolonged market pressure.

The restructuring follows a steep decline in the OM token, which reached an all-time high of $8.99 before collapsing to $0.59 by April 2025. As of early 2026, it remains at about 90% below its pre-crash value. Total value locked in MANTRA's DeFi ecosystem has also plummeted, with data showing an 81% drop to $864,857 from a peak of $4.51 million.

Mullin expressed accountability for the situation, calling it one of the most difficult years in the company's history. The restructuring affects multiple teams, with business development, marketing, and HR being the hardest hit. The CEO emphasized the need for focused execution to regain a market-leading position.

Why Did This Happen?

The OM token's collapse in early 2025 was attributed to aggressive leverage policies on centralized exchanges. Liquidation cascades caused systemic risks to the project. In response, MANTRA implemented governance reforms, including validator decentralization, a real-time tokenomics dashboard, and a burn of 150 million staked OM tokens. Despite these measures, the prolonged downturn continued to strain the company's finances.

The restructuring decision came after months of strained relations with crypto exchange OKX, compounding the financial pressure. In addition, the company has faced increased competition in the RWA space, further squeezing margins and necessitating a leaner business model.

How Did Markets Respond?

MANTRA's announcement has drawn mixed reactions. While the job cuts reflect a necessary cost-cutting move, investors are monitoring the company's ability to regain traction in the RWA sector. The company's recent launch of mantraUSD, a stablecoin backed by short-term U.S. Treasury bills, has been positioned as a key step in reinvigorating the ecosystem.

At the same time, investors are watching whether the deprecation of the ERC-20 version of OM will be handled smoothly. Holders must migrate their tokens to the native OM token on the MANTRA Chain before Jan. 15, 2026. The migration process could impact liquidity and user adoption if not executed seamlessly.

What Are Analysts Watching Next?

Analysts are closely following MANTRA's strategic pivot toward RWA sustainability. The company's ability to attract new projects and partnerships in the RWA space will determine its long-term viability. Mullin has indicated that more details on new operating priorities will be released soon, which could provide clarity on the company's next steps.

Market observers are also watching how the broader crypto sector responds to similar restructuring efforts by other firms. Companies like Meta and BlackRock have also announced major layoffs in 2026, reflecting a trend of belt-tightening in the wake of economic uncertainty.

MANTRA's current capital position and financial strategy will be key indicators of its resilience in the face of ongoing market volatility. The company has $7.3 billion in capital as of the end of 2025, according to its latest financial reports.

Investors remain cautious but are betting on MANTRA's long-term potential in the RWA space. The company's ability to execute on its restructuring and return to profitability will likely determine whether it can regain investor confidence and stabilize its token price.