What to Know:
- Cronos, associated with Crypto.com, is seeking to reinstate 70 billion CRO tokens previously burned to restore its total supply of 100 billion tokens for a “Strategic Reserve,” which will be vested over 10 years, leading to community outrage.
- This $5 billion proposal (valued at current prices of 8 cents per CRO) aims to enhance the U.S. cryptocurrency landscape, fund ecosystem growth, and establish a CRO ETF; however, critics are concerned about the implications of value dilution and the reversal of the 2021 burn’s positive effects on pricing.
- Community dissent is apparent, with 86% of respondents opposing the governance vote (as of Monday), indicating feelings of betrayal regarding the burn’s legacy, despite a recent 8% increase in CRO prices within a market recovery. The voting period concludes on March 17.
Details:
The initiative introduced by Cronos aims to reverse the previous decision of burning tokens, proposing a return to a full supply under the strategy termed “The New Golden Age for Cronos.” The original reduction from 100 billion to 30 billion CRO tokens was celebrated as a strategic move to elevate value, resulting in significant price increases.
The governance proposal is currently met with skepticism as the community grapples with concerns over trust and value sustainability.
Community Feedback:
“This is the opposite of what #CROfam wants,” said user @WalkingTall101. “The 2021 burn was a landmark moment, a commitment to scarcity. Undoing it now diminishes our trust and the chain’s potential.”
“A burn is a burn; burnt tokens shouldn’t return. I strongly oppose this today!” commented Crypto.com’s ambassador @Wyll_BBK.
The fate of the proposal will be determined by the upcoming governance vote, where sentiment reveals a significant majority against the proposal. Prices for CRO have seen a recent uplift alongside a broader market increase.
