The centralized exchange Crypto.com's public chain Cronos recently proposed to restore the 70 billion CRO tokens that were destroyed in 2021, with the intention of providing financial support for the ecosystem. This proposal has faced strong opposition from the community. Currently, 95.7% of participants have voted against this plan, and the opposition is growing louder, with the voting set to end on March 17.
Proposal Content: Restore Destroyed CRO to Create Strategic Reserves
Cronos wants to restore the 70 billion CRO tokens that were destroyed in order to establish a "strategic reserve" to help revive the "golden age" of Cronos and support its development in areas such as DeFi, Non-Fungible Token, gaming, and the metaverse.
According to the proposal, restoring the destroyed CRO tokens will bring the total supply back to the original 100 billion CRO. Furthermore, these tokens will be locked for 10 years, including a 5-year base lock-up period and an additional 5-year lock-up period. Cronos officials stated:
This move will provide financial safeguards for its future roadmap (including planned projects such as ETFs) and help to position the US as the global center for cryptocurrencies.
Community Sentiment: Strong Opposition and Support Coexist
Supporters believe that restoring these tokens and establishing a strategic reserve will provide financial security for Cronos' long-term development, especially in areas like DeFi and Non-Fungible Token. This move is expected to inject new vitality into the Cronos ecosystem and support its future plans, including the planned ETF project.
However, opponents have criticized the proposal on multiple fronts. First, many are concerned that restoring 70 billion CRO tokens will lead to excessive market dilution, negatively impacting the CRO price. Secondly, some community members have questioned the lack of transparency in the proposal, as it does not clearly explain how the new tokens will be distributed and who will benefit from them.
There are also opponents who believe this proposal is inconsistent with the community's expectations for token burn and supply control, and they question whether it serves the best interests of the community.
Community Reaction: Intense Discussion and High Distrust
After the proposal was released, the discussion within the community has been exceptionally intense. Many members have demanded that Cronos provide more details, especially regarding the plans for distributing these new tokens. Some users have even compared this proposal to a cryptocurrency rug pull behavior.
