MANTRA, the company behind a real-world asset-focused Layer 1 blockchain, has announced mass layoffs across various departments, including business development, marketing, human resources, and other support functions. This restructuring follows what CEO John Patrick Mullin described as the most challenging year in the firm's history.
Details of the Layoffs
Mullin disclosed the staff reductions in a post on X, explaining that the decision was preceded by months of internal deliberation. The company had previously engaged in aggressive expansion throughout 2024 and into the first quarter of 2025, making substantial investments in blockchain infrastructure, ecosystem development, and go-to-market strategies within the RWA tokenization sector.
Those investments proved unsustainable.
A combination of a prolonged crypto market downturn, intense competition, and what Mullin termed "unfortunate and unfair" events in April 2025 led management to conclude that deeper cuts were necessary to preserve the company's runway.
Context and Impact on Token Value
This restructuring comes in the wake of a significant event in April 2025 when MANTRA's native token, OM, experienced a dramatic collapse, plummeting nearly 90% in a single day. This sharp decline triggered massive liquidations and widespread investor panic.
In response to the crisis, Mullin committed to burning the team's allocation of 300 million OM tokens. This action, executed in late April, permanently reduced the circulating supply of the token. The burn was intended to restore trust amidst growing scrutiny over alleged insider activity and governance concerns.
With the current leaner structure, management anticipates a renewed focus on high-priority initiatives and execution with greater discipline. Mullin stated, "I take full accountability for these decisions and for the path that led us here."