Cronos, the EVM-compatible Layer 1 blockchain backed by Crypto.com, has proposed to reissue 70 billion CRO tokens to strengthen its role in the crypto and AI industries.
Why Is Cronos Reissuing Burned Tokens?
In February 2021, 70 billion CRO tokens were burned, marking one of the largest burns in crypto history. However, Cronos now plans to restore the original supply, considering it crucial for long-term growth and strategic goals. Key reasons include ecosystem growth, institutional liquidity, and an AI-powered blockchain vision.
How Will the Strategic Reserve Work?
The 70 billion CRO tokens will be placed in the Cronos Strategic Reserve wallet under strict control and a 10-year vesting period. Vesting plan specifics include a 5-year lock-up already passed and an additional 5-year lock-up before tokens become available. Tokens will be released monthly via Cosmos SDK vesting account mechanism on the Cronos PoS chain.
Potential Benefits
Successful integration of CRO into ETFs and liquidity could drive demand. Increased liquidity supports DeFi, staking, and AI-powered applications. A structured vesting period prevents sharp price fluctuations.
The reissuance of CRO tokens could help Cronos solidify its market position, providing long-term stability and support for various applications.
