- Cronos seeks to restore original CRO supply with a 5-year vesting.
- Over 99% of votes support reissuing 70 billion CRO tokens.
- CRO price surges 46% amid strategic reserve proposal announcement.
Cronos, the Layer 1 blockchain connected to Crypto.com, is considering a proposal to reissue 70 billion CRO tokens. These tokens were burned in 2021, and the proposal aims to restore the total supply to the original 100 billion CRO. The reissued tokens would be placed in a strategic reserve wallet with a five-year vesting period.
Cronos plans to reissue 70B CRO tokens
Crypto.com plans to file for an exchange-traded fund (ETF) application for CRO to tap into institutional interest. This move is part of Cronos’ long-term strategy, which includes funding its roadmap. However, this proposal has raised mixed feedback within the crypto community, with some viewing it as a step backward.
In 2021, Crypto.com conducted one of the largest token burns in crypto history which reduced the supply from 100 billion to 30 billion CRO. This was done to promote decentralization and to prepare for Cronos’ mainnet launch. If the proposal is approved, the 70 billion CRO tokens would return the total supply to its original level.
Strategic Reserve
The proposal for the Cronos Strategic Reserve has garnered significant support from the crypto community. Over 99.76% of the votes so far favor the restoration of the full supply. If approved, the tokens would be locked in a reserve wallet with a five-year vesting period, according to the proposal details. This move aims to enhance the market position and address future funding needs for CRO.
Additionally, the reserve would help fund Cronos’ ongoing projects and long-term growth. The company also plans to launch a spot ETF by the end of 2025, which has sparked further interest. The initiative is part of Cronos’ broader efforts to strengthen its role in the crypto market.
The proposal has sparked criticism from the crypto community despite the positive response from token holders. Some community members argue that the increase in token supply could lead to price dilution. Others argue that it could undermine the decentralization efforts initiated with the 2021 burn.
Moreover, Cronos has expressed its ambition to position itself as a leader in the global crypto market. The company aims to support “America’s ambition to become the World Capital of Crypto,” and align itself with broader political movements. This move aligns with recent statements from U.S President Donald Trump, who announced plans for a national strategic crypto reserve.
Price Action
Following the proposal’s announcement, the value of CRO surged significantly. The token saw a 46% increase, reaching an intraday high of $0.101. This price jump coincided with a dramatic 773% rise in trading volume reaching over $164 million.
The proposal remains open for voting until March 17. If approved, it could reshape Cronos’ future and its role within the broader cryptocurrency market.