Cronos (CRO) Faces Strong Opposition Over Proposal to Restore 70 Billion Burned Tokens

Early voting results on Mintscan show that 87% of participants have rejected the plan.

Cronos, the Layer 1 blockchain linked to Crypto.com, faces strong opposition over a proposal to restore 70 billion CRO tokens burned in 2021.

The proposal, which aims to create a Cronos Strategic Reserve, has been met with negativity from community members, who are largely against the move.

Early voting results on Mintscan show that 87% of participants have rejected the plan. More than 500 million CRO tokens have been used in the vote, with 490 million—87%—voting against it. Meanwhile, 4%, or around 25.5 million CROs, have voted in favor of the proposal.

Cronos strategic reserve proposal

The proposal, if approved, would see the total supply of CRO return to 100 billion, with the tokens held in an escrow wallet.

Cronos developers explained that this aligns with Cronos’ long-term vision and supports its growth strategy.

The strategic reserve would be subject to strict control measures, including a new five-year lockup period. This would extend the vesting timeline to 10 years, incorporating a linear vesting mechanism that distributes monthly tokens via the Cosmos SDK on Cronos POS Chain.

Additionally, adjustments to CRO emission parameters would ensure validator rewards remain unchanged despite the increase in circulating supply.

The voting process is scheduled between March 3 and March 17, 2025, with implementation expected to follow shortly after.

Meanwhile, Cronos’ move is part of its broader strategy to position itself as the leading blockchain for AI-driven applications. The project also aims to secure a spot exchange-traded fund (ETF) listing and plans to launch a stablecoin in Q3 2025, followed by an ETF application submission in Q4.

Community pushback

Despite Cronos’ strategic goals, the proposal has sparked controversy.

A deep dive into the proposal reveals that it aims to adjust the total outstanding CRO to 100 billion by transferring 70 billion burned tokens to a strategic reserve.

The initiative highlights the importance of maintaining a healthy balance between liquidity and long-term vision.

However, the proposal has faced backlash from the community, with many expressing their disapproval.

On X, CRO advocate Wyll Bilderberg said, “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! If this pass, it’s will just be a confirmation that Cronos is heavily centralized, and so can’t be trusted.”

The unexpected impact

The proposal has unexpectedly impacted CRO’s market performance. According to CryptoSlate data, the token surged 15% during the reporting period, reaching $0.08434 as of press time.