In what can only be described as a bold but peculiar move, Cronos has announced that it is proposing a community vote on the creation of a Cronos Strategic Reserve by undertaking a reversal of the February 2021 token burn.
The 2021 burn was a significant event that enhanced scarcity and increased the value of CRO from 6 cents to 25 cents in a few weeks.
If approved, the proposal aims to reissue 70 billion tokens that were burned during 2021, restoring the total supply to its original 100 billion.
The proposal has left community members perplexed.
What is being proposed and Why:
Essentially, Cronos wants to reverse course and reissue the 70 billion tokens.
The reissued tokens are intended to be placed in a Cronos Strategic Reserve escrow wallet, with a 10-year linear vesting schedule, to support various ecosystem initiatives, including the development of a CRO exchange-traded fund (ETF) and efforts to integrate with traditional finance and artificial intelligence projects.
The broader objective, through these initiatives, is to provide a $5 billion push (at CRO’s current prices) to establish US crypto dominance.
Community Reactions:
The proposal has sparked considerable debate within the Cronos community.
Many members express concerns that reissuing the burned tokens could dilute the value of existing holdings and undermine the commitment to scarcity established by the initial burn:
Others questioned the logic behind the move:
Others even called it basis for a rug pull:
Conversations on Reddit express similar frustration:
“That sounds ridiculous. Would it not just dilute the market and massively reduce the current price. Don’t see any logic to this at all. Not a good sign for crypto.com.”
Some community members believed there has more to the story and demanded clarity:
While initially, over 80% of participants in the governance voting opposed the plan, the numbers are now shifting. Voting is open till 17th March. Check latest numbers here.
