Cronos, the blockchain ecosystem linked to Crypto.com, has officially approved a proposal to issue 70 billion $CRO tokens—a move that has sparked discussions within the crypto community.
Voting: A Controversial Process
The vote took place from March 2 to March 16 and was highly contested. By the end of the voting period, the proposal lacked significant support. However, on March 17 at 14:00 UTC, a surge in votes favored the proposal, leading to its approval. Large validators associated with Crypto.com were crucial in this outcome. Final voting results: Yes - 61.18%, No - 17.61%, Abstain - 20.11%, Veto - 0.11%.
Reasons for Token Reissuance
One of the key reasons for restoring these tokens was to support the expansion of the Cronos ecosystem. These new tokens are expected to promote network growth and support institutional liquidity. In 2021, 70 billion tokens were burned to enhance their value and scarcity. Now, Cronos aims to integrate $CRO into institutional markets, including a potential ETF.
Strategic Reserve and Future Plans
The newly minted 70 billion $CRO tokens will be placed in Cronos' strategic reserve and distributed over several years. These tokens will be locked in a five-year vesting period to prevent immediate market impact and will be released via the PoS chain.
The implementation of this proposal could significantly impact the future of $CRO. While increased supply raises inflation concerns, strategic allocation may mitigate these risks. Cronos anticipates that successful ETF implementation will further bode well for token demand.
