Cronos, the Layer 1 blockchain connected to Crypto.com, is currently facing backlash over a controversial proposal to restore 70 billion CRO tokens that were burned in 2021. Early voting results on Mintscan reveal that 87% of participants have opposed the plan. The proposal aims to create a Cronos Strategic Reserve, with Crypto.com’s CEO Kris Marszalek stating that a $5 billion reserve will help make America the World Capital of Crypto. Developers argue that this aligns with Cronos’ long-term vision and growth strategy, with the tokens being held in an escrow wallet subject to strict control measures.
If approved, the total supply of CRO would return to 100 billion, with the tokens being locked up for an additional five years. A linear vesting mechanism would then distribute monthly tokens through the Cosmos SDK on the Cronos POS Chain. Despite the increase in circulating supply, adjustments to emission parameters would ensure validator rewards remain unaffected. The voting process is scheduled between March 3 and March 17, 2025, with implementation expected shortly after. This move is part of Cronos’ broader strategy to position itself as the leading blockchain for AI-driven applications, aiming to secure an ETF listing and launch a stablecoin in Q3 2025.
However, the proposal has faced significant community pushback, with Mintscan data showing that 87% of participants have opposed it. Critics argue that burnt tokens should not be brought back to life, with some expressing concerns about centralization. Despite this, the proposal unexpectedly impacted CRO’s market performance, with the token surging 15% during the reporting period. The controversy surrounding the proposal has sparked discussions on social media, with some questioning the credibility of Cronos and the implications of restoring the burned tokens.
As the voting process continues, it remains to be seen whether the Cronos community will ultimately approve or reject the proposal to restore the burned tokens. The outcome of this decision could have significant implications for the future of Cronos as it continues to pursue its strategic goals in the blockchain space. Only time will tell how this controversial proposal will shape the trajectory of Cronos and its standing within the crypto community.
