Cronos Reverses Token Burn, Boosting Supply to 100 Billion
The Cronos blockchain (CRO) has approved a governance proposal to reissue 70 billion tokens previously burned in 2021, sparking accusations of centralization and market manipulation. The decision effectively raises the CRO supply from 30 billion back to 100 billion tokens.
Crypto.com’s Role in the Controversial Vote
The proposal, which passed on March 18, has drawn criticism due to the heavy influence of Crypto.com, the exchange behind Cronos. Independent validators initially opposed the measure, but votes from Crypto.com-affiliated validators tipped the balance in favor of the proposal.
Governance tracking data from Mintscan shows that the final hours of voting saw a sudden surge in 3.35 billion CRO votes, pushing the participation rate above the required 33% quorum and securing 62.1% approval.
Market Reaction and Accusations of Manipulation
Critics argue that the move artificially inflates Cronos’ market cap and damages trust in the blockchain’s decentralization claims. Andre Cronje, co-founder of Sonic, likened the move to “a single voter deciding the fate of billions in market cap.”
Despite community opposition, the newly issued CRO tokens will be allocated to a strategic reserve wallet and distributed under a multi-year vesting schedule, potentially impacting the supply dynamics and long-term investor sentiment.
With Crypto.com planning an ETF application for CRO, some speculate that the reissuance may be aimed at enhancing the token’s institutional appeal—but at the cost of community trust.
