Cronos, the blockchain linked to Crypto.com, has approved a proposal to reissue 70 billion $CRO tokens. This decision has sparked debate in the crypto community as the number of tokens will return to its original 100 billion.
The Voting Process: A Controversial Finish
The vote took place from March 2 to March 16 and sparked heated discussions. Last-minute votes, allegedly from Crypto.com, secured the proposal's success. Andre Cronje, co-founder of Sonic, criticized the outcome.
Why Is Cronos Reissuing Burned Tokens?
Cronos argues that restoring the original number of tokens is necessary for long-term growth and institutional adoption. The additional tokens will help expand the ecosystem and integrate into institutional markets, including possible ETF brokerage funds.
How Will the Strategic Reserve Work?
The new tokens will be placed in a reserve wallet and locked for five years, followed by monthly distribution. This will avoid a sudden increase in supply and ensure stability of rewards.
The reissue of tokens has caused mixed reactions. The increased supply could lead to changes in the token's value, but Cronos's long-term strategies could mitigate possible inflationary effects.
