Cronos Governance Proposal Sparks Controversy
The Cronos blockchain team, backed by Crypto.com, has proposed the reissuance of 70 billion CRO tokens that were burned in 2021—an amount currently valued at $5.3 billion.
The team suggests using these reissued tokens to establish a "Cronos Strategic Reserve," inspired by President Donald Trump’s proposal for a U.S. crypto reserve. The reserve would help fund Cronos' long-term roadmap while supporting America’s push to become the global leader in crypto innovation.
Community Pushback and Voting Trends
The proposal has faced strong opposition from the community:
- On Discord and X (formerly Twitter), many users have called it a bad move, arguing that it dilutes the CRO supply.
- Early voting from 16 out of 100 Cronos validators shows 95.7% against the proposal, while only 3.45% support it.
Reissuance and Vesting Plan
If passed, the reissued 70 billion CRO would be:
- Locked in an escrow wallet
- Released gradually over 10 years
- Subject to governance control
Past Governance Decisions on CRO Supply
In November 2024, Cronos validators overwhelmingly voted to burn 50 million CRO tokens—the opposite of the current proposal. This contrast raises concerns about inconsistent supply management.
With CRO prices down 8%, the future of the Cronos supply hangs on the outcome of the vote.
