- Cronos proposes reissuing 70B burned CRO tokens with a 5-year vesting schedule to boost liquidity.
- Community voting on the proposal runs until March 17, requiring 33.4% participation to pass.
- Critics warn reissuing CRO may dilute value, while supporters see it as vital for future growth.
Cronos, the blockchain from Crypto.com, has introduced a governance proposal that could significantly impact its tokenomics. The proposal suggests reissuing 70 billion CRO tokens, which were previously burned in 2021. This move would increase the total supply back to 100 billion CRO. The newly minted tokens would be placed in a strategic reserve with a 5-year vesting schedule.
The proposal has sparked debate within the Cronos community. Supporters believe the additional tokens will enhance liquidity and fund future developments, such as an ETF. Critics argue that it undermines previous commitments and could lead to centralization and dilution of value. The community vote on the proposal began on March 3 and will run until March 17.
Initial voting data suggests strong support for the proposal. On the first day, 0.5% of the total CRO supply participated, with 99.76% of votes in favor. However, for the proposal to pass, at least 33.4% of the total CRO supply must participate in the vote. If the required quorum is not met, the proposal will be rejected.
Cronos has outlined a detailed roadmap for its governance upgrade. The governance proposal was officially published on March 3, 2025. The chain-maind binary v5 will be released on March 11. If the proposal passes, implementation will follow in the days after March 17, at the specified block height.
The CRO reissuance plan coincides with discussions in the U.S. about a potential national crypto reserve. This initiative includes several blue-chip tokens, potentially creating new use cases for CRO. Despite the proposal’s controversy, the announcement has led to a price surge. CRO hit a one-week high of $0.10 following the news.
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Cronos remains a key player in the crypto space. The platform supports over 330 trading pairs and processes $7.2 million in daily volume. Despite this, its decentralized activity lags behind other major blockchain networks. The Cronos chain holds $407.8 million in Total Value Locked (TVL), a figure more in line with mid-sized blockchain projects.
Cronos operates multiple interconnected networks, including its EVM-compatible chain and zkEVM scaling solution. However, most activity occurs on the Proof-of-Stake chain. The network hosts several DeFi projects, including VVS Finance, which offers yield farming and swaps.
The governance vote will determine the future direction of the Cronos ecosystem. If approved, the strategic reserve will be implemented with a controlled release schedule. Whether the proposal strengthens Cronos or raises further concerns remains to be seen. The results of the vote will shape the project’s future and its role in the broader crypto industry.
