TL;DR
- The Cronos blockchain, linked to Crypto.com, will restore the total supply of CRO to its original cap of 100 billion tokens.
- The new tokens will be allocated to a “strategic reserve” with a long-term vesting schedule, aiming to boost the ecosystem.
- The vote was initially close, but large validators affiliated with Crypto.com tipped the balance in the final hours.
In a decision that has sparked intense debate, the Cronos community approved the governance proposal to restore the total supply of CRO to 100 billion tokens. This move involves the reissuance of 70 billion CRO that had been burned in 2021, marking a strategic shift for the blockchain backed by Crypto.com. Despite initial opposition, the decision was solidified with key support from major validators in the final hours of the vote.
According to data from Mintscan, the vote took place between March 2 and March 16. Initially, participation was far from the required 33% quorum, and opposition significantly outweighed support. However, a sudden influx of 3.35 billion CRO votes in the final phase changed the outlook, reaching 70% participation and securing approval with 62.1% voting in favor. This last-minute swing has led to concerns over governance fairness, but supporters argue it demonstrates the strength of Crypto.com’s influence.
Repercussions and Future Prospects
The proposal has significant implications for the Cronos economy. The plan includes the creation of a “strategic reserve” under a long-term vesting schedule, aiming to strengthen the ecosystem and fund new initiatives. Additionally, Crypto.com seeks to position CRO in the institutional market by filing for an exchange-traded fund (ETF), a strategy that could increase token adoption. This move aligns with a broader industry trend where crypto firms seek regulated investment vehicles to attract institutional capital and expand market presence.
However, the way the proposal was approved has sparked criticism within the crypto community. Some analysts argue that the intervention of large validators affiliated with Crypto.com compromises the decentralization of the project. Andre Cronje, co-founder of Sonic, critically remarked:
“Cronos goes from a $2.5 billion to an $8.5 billion market cap with a single vote. Decentralization doesn’t matter… until it does.”
Despite the controversy, CRO’s price reflected a mixed reaction, dropping 8.5% in the past 24 hours. In the long run, the initiative could strengthen the ecosystem, provided the funds are used effectively and transparently. The Cronos blockchain, which continues to establish itself in the cryptocurrency space, now faces the challenge of proving that this decision will benefit both the ecosystem’s development and the broader crypto community.
