Crypto.com Revives Its CRO Token, Bypassing Burning by Reissuing 70 Billion Units

In a decision that has sparked intense debate, the Cronos community approved the governance proposal to restore the total supply of CRO to 100 billion tokens.

The Cronos community has approved the governance proposal to restore the total supply of CRO to 100 billion tokens, a move that has sparked heated debate. This decision, which involves the reissuance of 70 billion CRO tokens previously burned in 2021, marks a strategic shift for the blockchain backed by Crypto.com. Despite initial opposition, key support from major validators in the final hours of the vote ultimately tipped the scales.

The vote, which took place between March 2 and March 16, saw participation numbers far from the required 33% quorum, with opposition significantly outweighting support. However, a sudden influx of 3.35 billion CRO votes in the final phase, with 70% participation and 62.1% voting in favor, ultimately secured approval for the proposal. This last-minute swing has raised concerns over governance fairness, but supporters highlight the strength of Crypto.com’s involvement.

The proposal has significant implications for the Cronos economy. The plan includes the creation of a “strategic reserve” with CRO tokens subject to a long-term vesting schedule, aiming to support the ecosystem and fund new initiatives. Moreover, Crypto.com seeks to position CRO in the institutional market by applying for an exchange-traded fund (ETF), a strategy that could increase token adoption. This move aligns with a broader industry trend where crypto firms are seeking regulated investment vehicles to attract institutional capital and expand their market presence.

However, the mode of approval for the proposal has sparked criticism within the crypto community. Some analysts argue that the intervention of large validators affiliated with Crypto.com compromises the decentralization of the project.

“Cronos goes from a $2.5 billion to an $8.5 billion market cap with a single vote. Decentralization doesn't matter... until it does,” remarked Andre Cronje, co-founder of Sonic.

Despite the controversy, CRO’s price has reflected a mixed reaction, dropping 8.5% in the past 24 hours. In the long run, the initiative could strengthen the ecosystem, provided the funds are used effectively and transparently. The Cronos blockchain, which continues to establish itself in the cryptocurrency space, now faces the challenge of proving that this decision will benefit both the ecosystem’s development and the broader crypto community.output: TL;DR

A governance proposal to restore the total supply of (CRO) to 100 billion tokens has been approved by the Cronos community. The proposal, which was met with heated debate, will see the reissuance of 70 billion CRO tokens that were previously burned in 2021. The move marks a strategic shift for the blockchain backed by Crypto.com.

Despite initial opposition, the decision was ultimately solidified with key support from major validators in the final hours of the vote. The vote, which took place between March 2 and March 16 on Mintscan, initially saw participation numbers far from the required 33% quorum, with opposition significantly outweighting support. However, a sudden influx of 3.35 billion CRO votes in the final phase saw participation numbers hit 70% and support for the proposal reach 62.1%.

This last-minute swing has raised concerns over governance fairness, but supporters argue that it showcases the strength of Crypto.com’s influence. The proposal, which aimed to create a “strategic reserve” with CRO tokens subject to a long-term vesting schedule, was designed to strengthen the ecosystem and fund new initiatives.

Additionally, Crypto.com is planning to position CRO in the institutional market by applying for an exchange-traded fund (ETF), a strategy that could increase token adoption. This move aligns with a broader industry trend where crypto firms are seeking regulated investment vehicles to attract institutional capital and expand their market presence.

The way the proposal was approved has sparked criticism within the crypto community, with some arguing that the intervention of large validators affiliated with Crypto.com compromises the decentralization of the project.

“Cronos goes from a $2.5 billion to an $8.5 billion market cap with a single vote. Decentralization doesn't matter... until it does,” commented Andre Cronje, co-founder of Sonic.

Despite the controversy, CRO’s price has reflected a mixed reaction, dropping 8.5% in the past 24 hours. However, in the long run, the initiative could strengthen the ecosystem, provided the funds are used effectively and transparently.

As Cronos continues to establish itself in the cryptocurrency space, the community will be watching to see how this decision impacts the development of the ecosystem and benefits the broader crypto community.