The Cronos community has approved a contentious proposal to restore 70 billion CRO tokens that were permanently burned in 2021. Largely influenced by Crypto.com, the proposal passed with 62.18% of the votes, according to Mintscan, increasing the total CRO supply back to 100 billion. Introduced earlier this month, the proposal aimed to create a Cronos Strategic Reserve by reversing the previous token burn. Its authors argued that this move aligns with Cronos’ long-term vision, supports ecosystem growth, and could fund AI-driven applications.
Despite its approval, the decision has sparked backlash within the Cronos community. Many members criticized the process, citing concerns about decentralization and Crypto.com’s considerable influence. Sonic co-founder Andre Cronje remarked: “Tomorrow Cronos goes from $2.5bn mcap to $8.5bn mcap with a single vote and all it needed was a single voter.” Early community voting strongly opposed the proposal, but in the final hours of the voting period on March 16, a large influx of 3.35 billion CRO tokens from major validators like Starship, Falcon Heavy, Electron, Antares, and Minotaur IV shifted the outcome in favor of Crypto.com’s position.
Critics argue that this last-minute shift underscores deeper issues within Cronos’ governance structure, suggesting it undermines trust in the network and sets a precedent for reversing critical economic decisions. CRO advocate Wyll Bilderberg expressed concerns about the precedent set by reversing a token burn, noting that such actions could encourage other projects to follow suit, eroding confidence in tokenomics. He added, “I have no words, I see it as a nail in the coffin of decentralization, and can only pray for the community to benefit from this move.”
Following the approval, the market sentiment reflected these concerns, with CRO’s price dropping over 8% to $0.07, indicating investor uncertainty over the move. Crypto.com has yet to comment publicly on the proposal’s passage.
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