Cronos Proposes to Reverse CRO Token Burn
In an unexpected twist, the blockchain ecosystem associated with Crypto.com, known as Cronos, is looking to reinstate 70 billion CRO tokens that were previously burned in 2021. This controversial proposal, which has left many community members baffled, is now live for governance voting. Dubbed “The New Golden Age for Cronos,” the plan aims to restore the original token supply of 100 billion CRO.
The initial burn in 2021 reduced the total supply of CRO from 100 billion to a mere 30 billion. At the time, this decision was widely praised as a strategic move to enhance the token’s value, resulting in a significant price surge from 6 cents to 25 cents within a matter of weeks. Now, however, Cronos is looking to take a different approach by reissuing these tokens into a “Strategic Reserve” escrow wallet, which will be gradually released monthly over the next decade.
The driving force behind this proposal is a bold $5 billion initiative aimed at solidifying U.S. dominance in the cryptocurrency sector, fostering ecosystem development, and launching a CRO Exchange-Traded Fund (ETF). The Cronos team believes that this move has the potential to onboard billions of new users and facilitate the integration of CRO with institutional liquidity pools. Nevertheless, skepticism among community members is palpable.
Reactions to the proposal have been swift and predominantly critical. Many fear that reintroducing these tokens could dilute the value of CRO, a major concern for a community that celebrated the 2021 burn as a pivotal moment for the token’s future. User @WalkingTall101 expressed discontent, stating, “This is the opposite of what #CROfam wants. The 2021 burn was a landmark moment for #CRO, signaling a commitment to scarcity and growth. Undoing it now feels like a step backward, diluting our trust and the chain’s potential.”
Similarly, well-known Crypto.com ambassador @Wyll_BBK chimed in, saying, “A burn is a burn; burnt tokens shouldn’t be brought back to life. I’m almost never against anything happening on Cronos, but today, I’m against it, big time!”
The ultimate fate of this proposal now hinges on the outcome of the governance vote, which currently shows 86% of participants opposing the reissuance, 8.6% abstaining, and only 4.68% in favor as of Monday. It’s worth noting that this could change if a significant player decides to cast their vote in favor as the deadline approaches. The voting period will run until March 17. Interestingly, despite the controversy, CRO prices have seen an 8% increase in the past 24 hours, aligning with a broader positive movement in the cryptocurrency market.
