Cronos Proposes to Reissue 70 Billion CRO Tokens to Restore the Original Supply

Crypto.com is considering a proposal to reissue 70 billion CRO tokens. These tokens were burned in 2021, and the proposal aims to restore the total supply to the original 100 billion CRO.

Cronos, the Layer 1 blockchain subsidiary of Crypto.com, is planning to reissue 70 billion CRO tokens if a proposal on the Cronos POS governance forum is approved by March 17.

The proposal, which has already garnered massive support with 99.76% of votes in favor, aims to restore the total supply of CRO to 100 billion. The reissued tokens would be placed in a strategic reserve wallet with a five-year vesting period.

The initiative to reissue the CRO tokens is part of a broader move by Cronos to strengthen its market position and address future funding needs for its projects. Earlier this year, the company announced plans to launch a spot ETF by the end of 2025, which sparked interest among institutional investors.

This move is also part of Cronos' long-term strategy to create a decentralized ecosystem and support the development of Web3 applications on its chain. However, the proposal has sparked criticism from some members of the crypto community, who argue that it could lead to price dilution and undermine the decentralization efforts initiated with the 2021 burn.

Earlier in 2021, Crypto.com executed one of the largest token burns in crypto history, reducing the supply from 100 billion to 30 billion CRO. The move, which aimed to mitigate inflation and promote decentralization, was a significant event in the crypto space.

If the proposal is approved, the 70 billion CRO tokens would be placed in a strategic reserve wallet, directly controlled by the community through a multisig setup, as stated in the proposal details. The tokens would be subject to a five-year vesting period, gradually released into circulation at a rate of 14 billion tokens per year, beginning in 2024.

The proposal also mentions that the strategic reserve would be used to fund Cronos' ongoing projects, such as its efforts to integrate with other blockchains and support the development of decentralized autonomous organizations (DAOs).

Moreover, the company plans to launch a spot ETF by the end of 2025, an initiative that has sparked interest among institutional investors and could lead to increased demand for CRO.

The initiative is part of Cronos' broader efforts to strengthen its role in the crypto market and create a sustainable ecosystem for long-term growth. The company is seeking feedback from its community members on the proposal and invites everyone to vote on the proposal by March 17.

The company also aims to support “America’s ambition to become the World Capital of Crypto,” and align itself with broader political movements. This move aligns with recent statements from U.S President Donald Trump, who announced plans for a national strategic crypto reserve.

Following the proposal’s announcement, the value of CRO surged significantly. The token saw a 46% increase, reaching an intraday high of $0.101. This price jump coincided with a dramatic 773% rise in trading volume reaching over $164 million.

The proposal remains open for voting until March 17. If approved, it could reshape Cronos' future and its role within the broader cryptocurrency market.