Cronos, the layer 1 blockchain linked to crypto.com, is confronted with strong opposition about a proposal to restore 70 billion CRO tokens that were burned in 2021.
Early mood result Mintscan shows that 87% of the participants have rejected the plan.
Cronos’ strategic reserve proposal
The proposal statements that the burnt tokens restores creates a strategic reserve from Cronos.
CEO of crypto.com Kris Marszalek said:
“Cronos assigns a stock of $ 5 billion to make America the world capital of crypto.”
Cronos developers claim that this is in line with the long-term vision of Cronos and supports his growth strategy. If approved, the total stock of CRO would return to 100 billion, with the tokens in an Escrow wallet.
The reserve is said to be subject to strict control measures, including a new locking period of five years. This would extend the fortress time line up to 10 years, with a linear fortress mechanism that distributes monthly tokens via the Cosmos SDK on Cronos Pos chain.
In addition, adjustments to CRO emission parameters would ensure that the rewards of the validator remain unchanged despite the increase in circulating food.
The voting process is planned between March 3 and March 17, 2025, whereby the implementation is expected to follow shortly thereafter.
In the meantime, Cronos’s movement is part of his broader strategy to position itself as the leading blockchain for AI-driven applications. The project also focuses on securing a list of a spot exchange fund (ETF) and is planning to launch a Stablecoin in Q3 2025, followed by an ETF application entry in Q4.
Community pushback
Despite the strategic goals of Cronos, the proposal has led to controversy.
Mintscan data shows that more than 500 million CRO tokens were used in the mood, with 490 million – 87% – that have the move. Only 4%, or around 25.5 million CROs, supported it.
The return has been clear on social media, where Wyll Bilderberg, a CRO lawyer, said:
“A burn is a burn, burnt tokens may not be brought back to life. I am almost never against something that happens on Cronos, but today I am against it, great time! If this pass, this is simply a confirmation that Cronos is heavily centralized and therefore cannot be trusted. “
However, the proposal has unexpectedly influenced CRO’s market performance. According to CryptoSlate data, token rose by 15% during the reporting period and $ 0.08434 reached the moment of the press.