Cronos proposes restoring 70 billion previously burned CRO tokens to strengthen its position in crypto and AI domains.
Reasons for Reissuing Burned Tokens
In February 2021, 70 billion CRO tokens were burned, marking one of the largest burns in crypto history. The aim was to boost scarcity and increase token value. Now, Cronos believes that restoring the original supply is crucial for long-term growth and strategic ambitions.
Key reasons for reissuing include: - Ecosystem Growth: Cronos has significantly expanded, securing over 165 million transactions across multiple chains. - Institutional Liquidity: Plans to integrate CRO into institutional markets, including ETFs backed by CRO. - AI-Powered Blockchain Vision: Becoming a hub for AI agents, with CRO playing a central role.
How the Strategic Reserve Will Work
The restored 70 billion CRO tokens will be placed in a Custody Wallet named the Cronos Strategic Reserve, subject to strict control mechanisms over 10 years.
Key details of the vesting plan include: - 5-Year Lock-Up (Already Passed): The original CRO issuance on Ethereum was locked for five years. - Additional 5-Year Lock-Up: Newly issued tokens will also be locked for five years. - Monthly Vesting Schedule: CRO will be linearly released on a monthly basis through the Cosmos SDK mechanism on the Cronos PoS chain. - Controlled Emission: Adjusted to keep validator rewards stable.
Potential Benefits of the Plan
Restoring the supply of CRO could offer several benefits: - Institutional Adoption: Success in integrating CRO into ETFs and liquidity pools could increase token demand. - Ecosystem Expansion: More liquidity means stronger support for DeFi, staking, and AI-powered applications. - Long-Term Stability: A structured vesting period prevents sudden token dumps, reducing price volatility risk.
The proposal to restore burned CRO tokens aims for sustainable Cronos growth and fortifying its role in institutional and AI sectors. The long-term approach ensures stability and mitigates inflationary risks.
