Cronos, the EVM-compatible Layer 1 blockchain backed by Crypto.com, has proposed to reissue 70 billion CRO tokens that were previously burned to strengthen its role in the crypto and AI space.
Reasons for Token Reissuance
In February 2021, 70 billion CRO tokens were burned to boost scarcity and increase value. Cronos now believes that restoring the original supply is crucial for its long-term growth and strategic ambitions.
How Strategic Reserve Will Work
The 70 billion CRO tokens will be placed in the Cronos Strategic Reserve custody wallet with strict control mechanisms and a 10-year vesting period.
Potential Benefits and Risks
If Cronos succeeds in integrating CRO into ETFs and liquidity pools, demand for the token could rise. However, some might argue that reversing the token burn could impact long-term value appreciation.
While restoring 70 billion CRO can stimulate institutional adoption and sustainable growth, potential changes in token value need close monitoring.
