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Cronos Proposes Reversing Token Burn, Sparking Investor Backlash

source-logo  coinspress.com 03 March 2025 12:35, UTC

Crypto.com’s blockchain, Cronos, is considering restoring 70 billion CRO tokens that were previously burned, effectively reversing a major reduction in supply that took place in 2021.

The proposal, announced on March 3, 2025, aims to return CRO’s total supply to its original 100 billion, with the reissued tokens placed in a Cronos Strategic Reserve.

Project leaders argue that this move is essential for the long-term success of Cronos and Crypto.com, positioning the ecosystem for institutional adoption and expanded utility.

A key objective is pushing CRO into the top 10 blockchain protocols, with plans to launch an ETF to offer regulated investment exposure. Additionally, the initiative seeks to secure U.S. regulatory approval, allowing institutional investors to integrate the ETF into liquidity pools.


READ MORE: Trump Confirms U.S. Crypto Reserve With Bitcoin, XRP, Solana, and Cardano


Beyond financial instruments, the reserve is set to fund artificial intelligence-driven projects, developer grants, and decentralized applications. To prevent a sudden influx of tokens, the reissuance will follow a controlled vesting schedule, releasing tokens gradually over a decade.

The plan has sparked controversy among investors, with some likening it to printing money out of thin air. Critics argue that reviving burned tokens contradicts the principle of permanent supply reduction, raising concerns over potential price impact. Despite the backlash, CRO has maintained strong price momentum, surging by double digits.

coinspress.com