The Algorand Foundation has cut 25% of its workforce, according to an announcement on Wednesday. 

“This decision was not taken lightly and is in response to the uncertain global macro environment as well as the broader downturn in crypto markets,” the foundation posted to X. 

The Algorand Foundation is one of the organizations responsible for stewarding the Algorand Layer 1 blockchain. The non-profit has fewer than 200 employees, according to LinkedIn. 

Reductions have been ramping up across the crypto sector. Several projects from the former Nike unit RTFKT to the widely used governance protocol Tally are being sunset, while Messari and Block recently announced layoffs due to advancements in AI. 

Last week, OP Labs laid off 20 team members, claiming it was not a result of financial pressure, but rather an organizational pivot. 

According to its latest financial and transparency report, the Algorand Foundation held about $38 million worth of assets in U.S. dollar-denominated investments and 1.1 million ALGO tokens. 

Algorand’s ALGO token ranks 78th by market capitalization, with a value of about $805.8 million, according to The Block’s price page. The network hosts roughly $83 million in real-world assets, according to RWA.xyz.

“We believe that we now have a more sustainable alignment of Algorand Foundation resources with the protocol’s long-term business, technology, and ecosystem priorities,” the foundation said. “We remain fully focused on our mission of financial empowerment and the continued development and growth of the Algorand protocol, network, and ecosystem.”

Algorand was founded in 2017 by Turing Award-winning MIT cryptographer Silvio Micali, who helped invent zero-knowledge proofs.