The Cronos community has approved a highly contentious proposal to restore 70 billion CRO tokens that were permanently burned in 2021, a decision largely swayed by Crypto.com. The proposal, which secured 62.18% of the vote according to Mintscan, will increase the total CRO supply back to 100 billion.
Introduced earlier this month, the initiative aims to establish a Cronos Strategic Reserve by reversing the previous token burn. Proponents argue that the move aligns with Cronos’ long-term vision and will provide funding for AI-driven applications and broader ecosystem growth. However, the approval process has drawn significant backlash, particularly due to concerns over Crypto.com’s dominant influence in the vote.
While early community sentiment was largely against the proposal, a late surge of 3.35 billion CRO tokens from major validators—including Starship, Falcon Heavy, Electron, Antares, and Minotaur IV—shifted the outcome in favor of Crypto.com’s stance. Critics claim this highlights deeper governance issues within the Cronos ecosystem, with Sonic co-founder Andre Cronje sarcastically remarking that a single vote effectively increased Cronos’ market cap from $2.5 billion to $8.5 billion overnight.
Concerns over decentralization and network trust have also been raised. CRO advocate Wyll Bilderberg criticized the move, warning that reversing a token burn sets a dangerous precedent for other projects. He described the decision as a potential “nail in the coffin” for decentralization and expressed doubts about whether the community would truly benefit from the reversal.
Investor sentiment reflected these concerns, as CRO’s price fell over 8% to $0.07 following the proposal’s approval, according to CryptoSlate data. As of now, Crypto.com has yet to release an official statement on the matter, leaving the community divided over the long-term implications of the decision.
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