The Cronos blockchain ecosystem, associated with Crypto.com, has initiated a governance proposal that seeks to revert the CRO token supply to its original 100 billion. This ambitious strategy, aptly named ‘The New Golden Age for Cronos,’ aims to restore the 70 billion CRO tokens that were burned in 2021, a decision that has left many community members perplexed.
Initially, the burn of CRO’s supply from 100 billion to 30 billion was celebrated as a strategic maneuver designed to increase the token’s value, with its price surging from 6 cents to 25 cents in the months following the event. Now, however, Cronos wishes to reverse this move by reissuing the tokens into a ‘Strategic Reserve’ escrow wallet, intending to distribute them gradually over the span of ten years.
The underlying motive for this proposal is a bold $5 billion initiative aimed at solidifying U.S. dominance in the cryptocurrency market, fostering ecosystem growth, and launching a CRO ETF. The Cronos team envisions this approach as a means to attract billions of users and enhance the integration of CRO with institutional liquidity pools. Nonetheless, the community response has been overwhelmingly skeptical.
Critics argue that reintroducing these tokens could dilute their value, undermining the significance of the 2021 burn, which had been regarded as a pivotal moment of commitment to scarcity and growth. User @WalkingTall101 expressed discontent, stating, “This is the opposite of what #CROfam wants. Undoing the burn feels like a step backward, diluting our trust and the chain’s potential.” Similarly, well-known Crypto.com ambassador @Wyll_BBK asserted, “A burn is a burn; burnt tokens shouldn’t be brought back to life. I’m against this proposal, big time!”
The proposal’s future remains uncertain as it depends on a governance vote, which, as of now, shows 86% of votes against the reissuance, with only 4.68% in favor and 8.6% abstaining. The voting period lasts until March 17, and while CRO prices have seen an 8% increase in the past 24 hours aligned with a broader market surge, the outcome of this proposal continues to hang in the balance.
