Cronos Just Reversed a $5.6B Token Burn—Here’s What Happened

Cronos, the Layer 1 blockchain linked to Crypto.com, has officially approved a governance proposal to reissue 70 billion $CRO tokens—a move that has sparked controversy across the crypto community. The decision effectively reverses a massive burn from 2021, returning the total supply of $CRO to its original cap of 100 billion tokens.

The newly minted tokens will be allocated to a strategic reserve wallet and distributed over multiple years. According to the proposal, this reserve will support ecosystem growth, institutional adoption, and even a potential CRO-backed exchange-traded fund (ETF).

However, the approval process has raised concerns, as a last-minute surge of votes, according to Unchained—mostly from Crypto.com-controlled validators—secured the proposal’s success. Let’s break down what happened, why Cronos is bringing back burned tokens, and what it means for $CRO holders.

The Voting Process: A Controversial Finish

The governance vote took place from March 2 to March 16 and was highly contested. For most of the voting period, the proposal barely had enough support, and it even seemed like it might fail. The vote needed at least 33.4% quorum to pass, but participation remained low—until the final hours.

On March 17 at 14:00 UTC, a sudden 3.35 billion CRO votes in favor were cast, pushing participation to 70.57%—more than double the required quorum. The final results:

• Yes: 61.18%
• No: 17.61%
• Abstain: 20.11%
• Veto: 0.11%

Per reports, the bulk of the last-minute votes came from large validators controlled by Crypto.com. While only 11.86% of validators approved the proposal, Crypto.com’s influence—holding 70-80% of total voting power—ultimately secured the win.

Many community members voiced frustration, arguing that the vote was manipulated. 

“They [Crypto.com] pushed their votes almost at the last minute,” one large token holder commented on Telegram. “Now they created a precedent that other projects could follow.”

Andre Cronje, co-founder of Sonic, also criticized the outcome:

"Tomorrow Cronos goes from a $2.5 billion market cap to an $8.5 billion market cap with a single vote and all it needed was a single voter."

Why Is Cronos Reissuing Burned Tokens?

In February 2021, Cronos executed one of the largest token burns in crypto history—removing 70 billion CRO from circulation. The goal was to boost scarcity and increase $CRO’s value.

However, Cronos now argues that restoring the original supply is necessary for long-term ecosystem growth and institutional adoption. The key reasons behind the proposal include:

1. Expanding the Cronos Ecosystem

Since its launch, Cronos has grown beyond its original vision. The network has now processed over 165 million transactions across multiple chains, and the team believes an increased token supply will support future expansion.

2. Institutional Liquidity for CRO ETFs

Cronos wants $CRO to be integrated into institutional markets, including a potential exchange-traded fund (ETF). To achieve this, deep liquidity is essential. With the new tokens, Cronos plans to seed liquidity pools that could help secure an ETF approval.

3. Building an AI-Powered Blockchain

Cronos is pivoting toward AI-powered blockchain applications, and $CRO is set to play a key role. By ensuring a steady supply of tokens, Cronos hopes to fuel adoption in the growing AI and Web3 space.

How Will the Strategic Reserve Work?

The newly minted 70 billion CRO tokens will be placed in a custody wallet called the Cronos Strategic Reserve. These tokens will be locked under a long-term vesting schedule to prevent immediate market dilution.

Key Details of the Vesting Plan

1. 5-Year Initial Lock-Up (Already Passed) – The original CRO issuance on Ethereum was locked for five years.

2. Additional 5-Year Lock-Up – The newly minted tokens will undergo another five-year vesting period before becoming available.

3. Monthly Vesting Schedule – The tokens will be released linearly on a monthly basis through the Cosmos SDK vesting account on the Cronos Proof-of-Stake (PoS) chain.

4. Controlled Emission – To avoid inflationary shocks, the release rate will be adjusted to ensure that validator rewards remain stable.

What’s Next for Cronos and CRO?

With the proposal now approved, Cronos will execute a network upgrade to mint the 70 billion new tokens. The burning of the original tokens from 2021 remains permanent, meaning the total supply will now return to 100 billion CRO.

The impact on $CRO’s price remains uncertain. While the increased supply raises concerns about potential dilution, strategic allocation and long-term vesting could offset inflationary pressure. Additionally, if Cronos successfully launches a CRO ETF, it could drive demand for the token.