Cronos, an EVM-compatible Layer 1 blockchain backed by Crypto.com, has proposed to reissue 70 billion CRO tokens that were previously burned. This proposal aims to strengthen Cronos' role in the crypto and AI space by restoring the total supply to 100 billion CRO and maintaining long-term stability for the ecosystem.
Why is Cronos Reissuing Burned Tokens?
In February 2021, 70 billion CRO tokens were burned, marking one of the largest burns in crypto history. This significantly reduced the total supply to boost scarcity and increase token value. However, Cronos now believes that restoring the original supply is crucial for its long-term growth and strategic ambitions.
Key reasons for the decision: * Ecosystem Growth – Cronos has significantly expanded beyond its original use, securing over 165 million transactions across multiple chains. * Institutional Liquidity – Cronos aims to integrate CRO into institutional markets, including ETFs backed by CRO, which require deep liquidity. * AI-Powered Blockchain Vision – The blockchain is shifting towards becoming a hub for AI-powered agents, and CRO is central to this transformation.
How Will the Strategic Reserve Work?
The 70 billion CRO tokens will be placed in a custody wallet called the Cronos Strategic Reserve. This wallet will be subject to strict control mechanisms and a 10-year vesting period.
Key details of the vesting plan: * 5-Year Lock-Up (Already Passed) – The original CRO issuance on Ethereum was locked for five years. * Additional 5-Year Lock-Up – The newly issued tokens will undergo another five-year lock-up before becoming available. * Monthly Vesting Schedule – CRO will be released linearly on a monthly basis through the Cosmos SDK vesting account mechanism on the Cronos Proof-of-Stake chain. * Controlled Emission – The emission rate will be adjusted to ensure validator rewards remain stable.
Potential Benefits
The project has several potential benefits: * Institutional Adoption – If Cronos succeeds in integrating CRO into ETFs and liquidity pools, demand for the token could rise. * Ecosystem Expansion – More liquidity means stronger support for DeFi, staking, and AI-powered applications. * Long-Term Stability – A structured vesting period prevents sudden token dumps, reducing the risk of price volatility.
The reissuance of 70 billion CRO tokens may provide Cronos with potential benefits, including enhanced institutional integration and long-term stability. While the original token burn was aimed at increasing scarcity, restoring the supply is intended to support further growth and strategic development of the blockchain.
