Cronos has proposed to reissue 70 billion CRO tokens that were previously burned into a strategic reserve to restore the total supply to 100 billion CRO. This initiative aims to strengthen Cronos' role in the crypto and AI space while ensuring long-term stability for the ecosystem.
Why Is Cronos Reissuing Burned Tokens?
In February 2021, 70 billion CRO tokens were burned, one of the largest burns in crypto history. This reduced the total supply significantly to boost scarcity and increase token value. However, Cronos now believes that restoring the original supply is crucial for its long-term growth and strategic ambitions. Key reasons for this decision include:
* Ecosystem Growth – Since its inception, Cronos has expanded beyond its original use case, securing over 165 million transactions across multiple chains. * Institutional Liquidity – Cronos aims to integrate CRO into institutional markets, including ETFs backed by CRO, which require deep liquidity. * AI-Powered Blockchain Vision – The blockchain is shifting towards becoming a hub for AI-powered solutions, with CRO playing a central role.
How Will the Strategic Reserve Work?
The 70 billion CRO tokens will be placed in a custody wallet called the Cronos Strategic Reserve. This wallet will be subject to strict control mechanisms and a 10-year vesting period. 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 – The newly issued tokens will undergo another five-year lock-up. * Monthly Vesting Schedule – CRO will be released linearly on a monthly basis through the Cosmos SDK vesting account mechanism on the Cronos Proof-of-Stake chain. * Controlled Emission – The emission rate will be adjusted to ensure that validator rewards remain stable.
Potential Benefits
Reissuing 70 billion CRO tokens could lead to several benefits, including:
* Institutional Adoption – If Cronos succeeds in integrating CRO into ETFs and liquidity pools, demand for the token could rise. * Ecosystem Expansion – More liquidity means stronger support for DeFi, staking, and AI applications. * Long-Term Stability – A structured vesting period prevents sudden token dumps, reducing the risk of price volatility.
Cronos' proposal to reissue 70 billion burned CRO tokens aims to enhance liquidity and ensure long-term sustainability. Restoring the original supply volume could support institutional adoption and ecosystem growth.
