The blockchain Cronos is considering a significant proposal: reissuing 70 billion CRO tokens that were burned in 2021. This move aims to restore the total supply to the original number of 100 billion CRO. The plan involves placing these tokens in a “strategic reserve wallet” with a five-year vesting, valued at approximately 6.3 billion dollars.
Summary
The details of Cronos’s proposal: possible minting of 70 billion CRO
In 2021, one of the largest burn of tokens in cryptocurrency history reduced the supply from 100 billion to 30 billion CRO. This was done to support decentralization efforts before the launch of the Cronos mainnet. However, the current proposal aims to reverse this decision, eliciting mixed reactions within the community. Some see this move as a “step back,” while others consider it “suspicious.”
Crypto.com, the platform behind Cronos, also plans to submit an application for an exchange-traded fund (ETF) on CRO, seeking to capitalize on the growing institutional interest in criptovalute. This could represent a significant step for the adoption of CRO in the traditional financial market.
History and development of Cronos
Initially launched as Monaco Coin (MCO), the cryptocurrency was later renamed to CRO, becoming the native token of the Cronos Chain. After the rebranding in February 2021, the mainnet was launched in November of the same year. Currently, the developers are working on a zkEVM Layer 2 for Ethereum, demonstrating Cronos’s commitment to expanding its infrastructure.
Current situation of the CRO
Currently, the CRO token has a circulating supply of 27.3 billion and a maximum cap of 30 billion, valued at 2.4 billion dollars. Recently, the price of the CRO token has seen an increase of over 20% in the last 24 hours, indicating potential interest from investors.
Final Considerations
The proposal to reissue the burned tokens could have significant consequences for the stability and trust of the market in the CRO token. While some community members express concerns, others see opportunities for growth and consolidation. The question that remains is whether this strategy will help Cronos achieve its long-term goals and how it will influence investors’ trust in the project.
