Cronos Faces Backlash Over Proposal to Restore 70 Billion CRO Tokens
There is strong opposition towards Cronos, the Layer 1 blockchain associated with Crypto.com, regarding a proposal to bring back 70 billion CRO tokens that were burned in 2021.
Early results from voting on Mintscan reveal that 87% of participants have rejected the plan. You can view the results here.
Cronos’ Strategic Reserve Proposal
The proposal suggests that by reinstating the burned tokens, a Cronos Strategic Reserve will be established. Crypto.com’s CEO, Kris Marszalek, mentioned in a tweet that, “Cronos allocates a $5 billion stockpile to make America the World Capital of Crypto.”
Developers of Cronos argue that this move is in line with the platform’s long-term vision and growth strategy. If approved, the total supply of CRO would return to 100 billion, with the tokens being held in an escrow wallet.
The reserve would be tightly controlled, with a new five-year lockup period in place. This would extend the vesting timeline to 10 years, utilizing a linear vesting mechanism that distributes monthly tokens via the Cosmos SDK on the Cronos POS Chain.
Furthermore, adjustments to CRO emission parameters would ensure that validator rewards remain unaffected despite the increase in circulating supply.
The voting period is set between March 3 and March 17, 2025, with implementation anticipated shortly after.
Meanwhile, this action by Cronos is part of a broader strategy to establish itself as the leading blockchain for AI-driven applications. The project also aims to secure a spot exchange-traded fund (ETF) listing and intends to launch a stablecoin in Q3 2025, followed by an ETF application submission in Q4.
Community Backlash
Despite Cronos’ strategic intentions, the proposal has stirred controversy. Mintscan data indicates that more than 500 million CRO tokens have been utilized in the vote, with 87% opposing the proposal. Only around 4% have supported it.
There has been a significant backlash on social media platforms, with CRO advocate Wyll Bilderberg expressing his opposition by stating, “A burn is a burn, burnt tokens shouldn’t be brought back to life. I’m almost never against anything happening on Cronos, but today, I’m against it, big time! If this pass, it’s will just be a confirmation that Cronos is heavily centralized, and so can’t be trusted.”
Interestingly, the proposal has had an unexpected impact on CRO’s market performance. According to CryptoSlate data, the token saw a 15% surge during the reporting period, reaching $0.08434 at press time.
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