Cronos, associated with Crypto.com, announced a decision to reissue 70 billion CRO tokens previously burned in 2021. This move has sparked criticism and concern within the community.
Restoring the Supply: Proposal Details
Cronos’ proposal to reissue 70 billion CRO tokens worth $5.6 billion was approved, bringing the total supply back to 100 billion. These new tokens will be allocated to a Strategic Reserve Wallet with a multi-year vesting schedule. It's expected to attract institutional investments through a Crypto.com ETF.
Community Reaction and Centralization Accusations
The decision faced criticism as some argued that a sudden increase of 3.35 billion tokens at the end of voting suggested centralization. Andre Cronje highlighted that market cap might jump from $2.5 to $8.5 billion in a single day.
Comments and Future Actions
The voting period from March 3 to 17 saw over 62% approval, with key validators associated with Crypto.com proving essential for the positive outcome. Cronos announced plans for an additional 50 million CRO burn in the coming weeks.
The decision to reissue CRO tokens has divided opinions. While the project plans new stabilizing steps, the community remains concerned about possible centralization.
