Controversy Arises as Crypto.com Faces Backlash Over Burned Token Proposal

By: Eliza Bennet

Cronos, a Layer 1 blockchain affiliated with Crypto.com, is grappling with intense scrutiny amid its proposal to reinstate 70 billion CRO tokens that were previously burned in 2021. The proposal, aimed at establishing a Cronos Strategic Reserve, has met with considerable opposition, evidenced by early voting on the Mintscan platform where 87% of participants have voiced disapproval.

The plan advocates for the reintroduction of these tokens to bolster Cronos’ long-term vision and growth strategy. A key component of this proposal is its alignment with the goal of positioning America as the World Capital of Crypto, as highlighted by Kris Marszalek, CEO of Crypto.com. Should the proposal pass, the total supply of CRO would return to 100 billion, with tokens managed under strict escrow arrangements including a five-year lockup and a 10-year linear vesting period on the Cronos POS Chain.

Cronos’ developers have emphasized that this array of measures would not alter the validator rewards despite changes to the circulating supply. Additionally, Cronos aims to secure its place as a predominant blockchain for AI applications, outlined further in their future endeavors which include pursuing an exchange-traded fund (ETF) listing and a stablecoin launch.

Nevertheless, the proposal has been a lightning rod for critical responses across social media. Notable voices like Wyll Bilderberg, a known CRO advocate, have articulated their opposition, highlighting concerns over centralization and trust implications. Despite this contention, the market performance of CRO experienced a surprising surge, with data indicating a 15% rise within the reporting timeframe.