In what is widely being seen as an inexplicable move, Cronos announced on X earlier today that a governance proposal to burn 50 Million CRO tokens was now live.
The announcement comes amidst completion of the voting timeline to reverse the burn of the 70 Billion CRO, thus leaving many confused.
The Proposal:
According to Cronos, the proposed burn is part of a series of burn events being undertaken to implement the burning mechanism of $CRO. Three burn events of the same value burning the continuously allocated portion of $CRO generated through emissions to the community pool at the Cronos POS Chain protocol level have already occurred in 2023 and 2024.
The current proposal seeks to burn 50 million $CRO and is up for voting in the next two weeks. The current status of the votes can be seen here.
The burn proposal announcement made no mention of the heavily controversial reverse burn proposal, or explain how the two rather contradictory activities showcase a collective vision for Cronos.
CroFam Reacts: Chaos, Confusion and Contradiction
Community members were perplexed by the proposal:
Many could not see the point of the activity, when 70 Billion CRO tokens is set to be “reverse-burned”:
Some defended the decision as a routine activity, while others encouraged the burn, calling for a more effective strategy:
Others showed a lack of trust in CRO’s burn mechanism – an impact of the magical reverse burn:
With the community grappling to make sense of Cronos’ seemingly contradictory burn strategies, trust in its governance remains at stake – a dangerous place to be for any ecosystem. Only further clarity to the community can help rebuild bridges.
