In February 2021, 70 billion CRO tokens were burned. However, Cronos now proposes to restore the original supply to support growth and strategic goals.
Reasons for Token Reissuance
The initial purpose of burning in 2021 was to increase scarcity and token value. Now, Cronos believes that restoring the original supply is essential for long-term growth. The main reasons include: 1) Ecosystem Growth - Cronos has made significant progress, securing over 165 million transactions. 2) Institutional Liquidity - CRO integration into institutional markets requires deep liquidity. 3) AI-Powered Blockchain Vision - Transitioning towards AI-driven solutions demands proper token support.
How the Strategic Reserve Will Work
The 70 billion CRO tokens will be placed in a custody wallet called the Strategic Reserve, with strict control mechanisms and a 10-year vesting period. Planned measures include: 1) A 5-year lock-up period that has already passed. 2) A new 5-year lock-up for reissued tokens. 3) Monthly vesting through Cosmos SDK mechanism using PoS.
Potential Benefits
Reissuing the original CRO supply provides: 1) Institutional Adoption - Increased liquidity could drive demand for the token. 2) Ecosystem Expansion - Enhanced support for DeFi and AI applications. 3) Long-term Stability - Structured vesting prevents sudden price drops.
Cronos aims to strengthen its market position by reissuing 70 billion CRO tokens to better support its strategic initiatives and long-term goals.
