CRO Token Supply Set to Increase by 200% Following Governance Decision
The Cronos ecosystem votes to increase the CRO token supply significantly after a controversial governance flip led by major token holders.
Key Details:
- A small group of significant token holders influenced the governance vote with a shift of 3.2 billion tokens just before its conclusion.
- The value of CRO has dropped by 8.5% in the last 24 hours.
- The CRO total supply is set to expand from 30 billion to 100 billion.
A contentious proposal in the Cronos ecosystem concluded late Monday, resulting in a community vote approving the increase of the token supply from 30 billion CRO to 100 billion CRO over a decade-long vesting period. This decision came after several weeks of the community expressing opposition to the change, as a few influential CRO holders intervened in the final moments of the vote to favor the proposal.
Background:
The Cronos project, linked to the cryptocurrency exchange Crypto.com, proposed reintroducing 70 billion CRO tokens that were previously burned in 2021. The aim is to return to the original 100 billion token supply for a ‘Strategic Reserve.’ This initiative is calculated to be a $5 billion plan, given the current price of $0.08 per CRO, intended to enhance U.S. crypto leadership, support ecosystem growth, and establish a CRO ETF. Initial community reception was unfavorable; 86% opposed the proposal during its early days.
Nevertheless, crypto governance often only claims to involve community input, with substantial token holders frequently swaying decisions. This proposal, available for voting from March 2-16, initially failed to reach the required 33.4% quorum. However, at 14:00 UTC on Monday, a sudden influx of 3.35 billion CRO votes turned the results around, achieving quorum and finalizing the decision with a vote of 61.18% in favor.
In the lead-up to the vote, two validator networks, Starship and Falcon Heavy, supported the proposal despite initial strong opposition (77.97% against), but new validators, including Electron, Antares, and Minotaur IV, joined in at the last moment, utilizing a combined 3.2 billion CRO to back the initiative.
Following the successful vote, Cronos network had an upgrade planned shortly after, completed on March 18 at 03:00 UTC, marking the beginning of a supply increase exceeding 200% in the coming years. Traders reacted appropriately, with CRO in a state of decline, dropping 8.5% in the past 24 hours amid an otherwise stable market.
