Mantra resets, cuts the staff after OM Token is collected
Update Jan 14, 2:20pm UTC: This article has been updated to add comments from Manta CEO John Patrick Mullin.
Mantra, a blockchain project focused on real-world assets (RWAs), is restructuring its operations after what its management described as the most difficult year in the company's history, marked by a major token decline and prolonged market pressure.
On Wednesday, Manta CEO John Patrick Mullin announced that the company will move to a leaner, more capital-efficient structure following a period of expansion. The changes include job cuts between several teams and streamlining of processes to better match recent market conditions.
“I take full responsibility for these decisions and the path that led us here,” Mullin wrote. “I know this situation is extremely challenging, especially for those directly affected, their families and everyone at MANTRA. I am especially sorry for those who are leaving us.”
Mr. Mullin said the restructuring was primarily driven by a broader strategic reset rather than a narrow focus on cost reductions.
He told Cointelegraph that while the downsizing would reduce costs and extend the runway, the main drive was to streamline operations and consolidate resources in areas where Matra sees the strongest long-term opportunities.
“This hasn't changed our core RWA strategy one bit. If anything, we're doubling down on it,” Mullin told Cointelegraph, adding that they are prioritizing their Layer-1 chain, MantraUSD and Mantra Financial.
Token failure and long market pressure
The restructuring follows the massive fall of the Mantra OM token early last year.
According to CoinGecko, OM token peaked as high as $8.99 on February 23, 2025, before falling sharply to $0.59.
On April 30, Mantra linked OM's crash to centralized exchange policies, warning that liquidity poses systemic risks to crypto projects.
At the time, Mullin said the incident was more than a mantra and called for a re-evaluation of how exchanges are used against indigenous peoples.
After the crash, Mantra announced a series of governance and transparency measures, including validator decentralization efforts, the launch of a real-time Tokenomics dashboard, and the burning of 150 million shares of OM tokens to reduce supply.
Despite those measures, the extended recession continues to weigh on the project's finances. Mullin acknowledged that Mantra's cost base was unsustainable given the current market conditions, leading to the decision to cut staff and narrow its focus.
Related: MarketVector launches stablecoin and RWA tokenization indices, ETFs
Exchange tensions and the narrow path ahead
The restructuring also comes after months of strained relations between the company and crypto exchange OKX.
On December 8, Mullin urged OM holders to withdraw their tokens from OKX, accusing them of inaccurate information related to token migration. OKX has disputed the claims, saying it has evidence of concerted market activity before the April crash.
As the company focuses its resources on core performance, the job cuts have negatively impacted business development, marketing, human resources and other support functions, Mullin said.
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