Cronos has decided to issue 70 billion $CRO tokens, igniting debate within the crypto community. This move restores the total supply of tokens to its original level of 100 billion.
The Voting Process: A Controversial Finish
The vote on this matter took place from March 2 to 16 and was highly contested. Participation remained low for most of the period, but a last-minute surge in 'yes' votes secured the proposal's success. By the end of the voting, 70.57% supported the proposal.
Why Is Cronos Reissuing Burned Tokens?
Cronos argues that restoring the original supply is necessary for long-term ecosystem growth and institutional adoption. Key reasons include expanding the ecosystem, integrating $CRO into institutional markets, and supporting AI-powered blockchain applications.
How Will the Strategic Reserve Work?
The newly minted 70 billion CRO tokens will be placed in the Cronos Strategic Reserve with a long-term vesting schedule to prevent immediate market dilution. It includes a five-year initial lock and additional five-year vesting.
Cronos's decision to reissue tokens has led to differing opinions within the community. Observing the company's future steps in implementing strategic plans and the market impact of this measure is crucial.
