Cronos, the EVM-compatible Layer 1 blockchain, has proposed to reissue 70 billion previously burned CRO tokens to restore the total supply to 100 billion. This move aims to strengthen Cronos’ role in the crypto and AI spaces and ensure long-term ecosystem stability.
Reasons for Cronos Token Reissuance
In February 2021, 70 billion CRO tokens were burned to boost scarcity and value. However, Cronos believes that restoring the original supply is crucial for long-term growth. Key reasons include ecosystem growth, institutional liquidity, and a vision of the blockchain as an AI hub.
How the Strategic Reserve Will Operate
70 billion CRO tokens will be placed in the strategic reserve wallet under strict control with a 10-year vesting period. The vesting plan includes a 5-year lock-up, an additional 5-year lock-up, and monthly distribution through Cosmos SDK, preventing inflationary shocks and maintaining CRO's value.
Potential Benefits of Reissuance
If Cronos succeeds in integrating CRO into ETFs and liquidity pools, demand for the token could rise. Additional liquidity would support DeFi, staking, and AI applications. Vesting prevents sudden token drops, reducing volatility risks.
The reissuance of 70 billion CRO tokens is strategically significant for Cronos, opening avenues for institutional adoption and network stability.
