Cronos Community Approves 70 Billion CRO Token Restoration, Price Drops 8%

The Cronos community has recently approved a controversial decision to restore 70 billion CRO tokens that were permanently burned in 2021. This proposal, which was significantly influenced by Crypto.com, has sparked considerable debate within the community. The proposal, introduced earlier this month, aimed to establish a Cronos Strategic Reserve by reversing the previous token burn. Its authors argued that the restoration aligns with Cronos’ long-term vision, supports ecosystem growth, and could fund AI-driven applications. The proposal passed after securing 62.18% of votes, according to Mintscan. This move increases the total CRO supply back to 100 billion.

Despite passing the vote, the decision has sparked backlash within the Cronos community. Many crypto community members criticized the process, citing concerns over decentralization and Crypto.com’s significant influence. Sonic co-founder Andre Cronje stated, “Tomorrow Cronos goes from $2.5bn mcap to $8.5bn mcap with a single vote and all it needed was a single voter.” Early community voting strongly opposed the proposal, with many members rejecting the idea. Yet, in the final hours of the voting period on March 16, a surge of 3.35 billion CRO tokens from large validators, including Starship, Falcon Heavy, Electron, Antares, and Minotaur IV, shifted the outcome in favor of Crypto.com’s position.

Critics argue that this last-minute shift highlights deeper issues within Cronos’ governance structure. Some believe the move undermines trust in the network and sets a precedent for reversing critical economic decisions. CRO advocate Wyll Bilderberg expressed concerns about the precedent set by reversing a token burn. He noted that such actions could encourage other projects to follow suit, eroding confidence in tokenomics. He added, “I have no words, I see it as a nail in the coffin of decentralization, and can only pray for the community to benefit from this move.”

Crypto.com has yet to comment publicly on the proposal’s passage. The market sentiment reflected these concerns. Following the approval, CRO’s price dropped over 8% to $0.07, signaling investor uncertainty over the move. The controversy highlights the delicate balance between corporate influence and community governance in the cryptocurrency space, raising questions about the future direction of the Cronos network and the broader implications for decentralized finance. The decision to reissue the tokens has been met with mixed reactions, with some community members expressing support for the move, while others view it as a betrayal of the original principles of token burning. The restoration of these tokens, valued at approximately $5.6 billion, has raised concerns about the integrity and trustworthiness of the network. Critics argue that Crypto.com's substantial influence in the voting process undermines the decentralized nature of the Cronos blockchain, potentially eroding the trust that users and investors place in the network.