Mantra Restructures and Cuts Staff After OM Token Collapse and Tough Year

Mantra, a real-world asset-focused Layer 1 blockchain, is undergoing a company restructuring and cutting an unspecified number of staff. CEO John Patrick Mullin cited unsustainable cost structures amid a prolonged market downturn and the impact of the April 2025 OM token selloff as key reasons for the decision.

The layoffs affect multiple functions across the company, including business development, marketing, and HR. Mullin described the move as necessary to become more capital-efficient and to focus on the core strengths of the MANTRA Chain and its real-world asset (RWA) ecosystem.

The company has also announced the launch of mantraUSD, a stablecoin backed by short-term U.S. Treasury bills, and is preparing to deprecate the ERC-20 version of its OM token by January 15, 2026. Holders must migrate to the native OM token on the MANTRA Chain before the deadline.

Why Did This Happen?

Mantra's OM token has experienced a significant decline in value, trading approximately 99% below its all-time high of $8.99 recorded in February 2025. The total value locked in its DeFi ecosystem has also plummeted by 81% from its peak of $4.51 million to $864,857.

The prolonged market downturn and increased competition have made the company's cost structure unsustainable, according to Mullin. These factors, combined with the fallout from the April 2025 token selloff, have pushed Mantra to take decisive action to realign its resources and focus.

How Did Markets React?

The broader market has seen similar restructuring efforts across the crypto and finance sectors. Meta, Citigroup, and BlackRock have also announced major job cuts as part of their own cost-cutting and repositioning strategies.

Investors are closely watching the market's response to Mantra's moves. While the company remains optimistic about its RWA ecosystem, the token's performance and the broader crypto environment will determine the effectiveness of these changes.

What Are Analysts Watching Next?

Analysts are monitoring whether Mantra's restructuring will lead to a sustainable turnaround in its operations and token value. The company's pivot toward RWA and the introduction of mantraUSD are seen as critical steps in this direction.

Mantra's future success will depend on its ability to attract new users, maintain liquidity, and demonstrate long-term value. The migration of OM token holders to the native version and the launch of new RWA products will be key indicators of progress.

Investors are also watching for broader trends in the crypto industry, including regulatory developments and market sentiment. As the market continues to evolve, companies like Mantra must adapt quickly to remain competitive and relevant.