Cronos, linked to Crypto.com, has approved a proposal to restore 70 billion $CRO, causing controversy in the crypto community.
Voting Process
The voting on the proposal took place from March 2 to 16. Initially lacking support, last-minute votes from Crypto.com validators pushed the proposal through. Results: Yes - 61.18%, No - 17.61%, Abstain - 20.11%, Veto - 0.11%.
Reasons for Restoring Tokens
Initially, in February 2021, Cronos burned tokens to increase scarcity. However, for long-term ecosystem growth and institutional adoption, restoring the original supply was deemed necessary.
Strategic Reserve Plan
The new 70 billion $CRO tokens will be placed in a strategic reserve. They will be released gradually to minimize inflation risks. An initial 5-year lock-up is completed, followed by an additional 5-year vesting period.
With the proposal approved, Cronos will initiate a network upgrade to mint new $CRO tokens. The future of $CRO pricing remains uncertain, but strategic allocation may mitigate inflationary pressure.
