Cronos, the blockchain platform backed by Crypto.com, plans to reissue 70 billion previously burned CRO tokens, restoring the total supply to 100 billion.
Reasons for Token Reissuance
In February 2021, Cronos burned 70 billion CRO tokens, marking one of the largest burns in crypto history. The company now deems restoring the original supply crucial for long-term growth and strategic goals. Key reasons include ecosystem growth, planned integration of CRO into institutional markets, and the implementation of an AI-focused blockchain vision.
Strategic Reserve Mechanism
The 70 billion new CRO tokens will be placed in a custody wallet named Cronos Strategic Reserve, subjected to strict control mechanisms and a 10-year vesting plan. This includes an additional 5-year lock-up and a monthly vesting schedule, aimed at preventing inflationary shocks.
Potential Benefits
The reissuance and placement of tokens within the strategic reserve could enhance CRO’s institutional adoption, reinforce DeFi, staking, and AI application growth, while ensuring long-term stability by avoiding sudden price volatility.
Bringing the total supply of CRO back to 100 billion will provide advantages both to institutional investors and the development of Cronos blockchain applications, fostering long-term ecosystem stability.
