The cryptocurrency exchange Crypto.com's blockchain Cronos released a community governance proposal on March 3 this year, in which the official proposed to re-issue the 70 billion CRO tokens that were destroyed in 2021, in order to "restore the golden age of Cronos", allowing the CRO token supply to return to the initial 1 billion tokens:

In 2021, 70 billion CRO tokens were historically destroyed. According to today's proposal, we will re-issue the same amount of tokens on the Cronos POS to the Cronos strategic reserve custody wallet, restoring the total supply to the initial 1 billion CRO.

The strategic reserve custody wallet will be subject to a new 5-year lock-up period, in addition to the 5-year lock-up period that has already passed since the initial issuance of CRO on Ethereum, making the total lock-up period 10 years.

The official holds the majority of voting rights

We know that in the cryptocurrency field, token issuance is usually not a good thing for holders, because assuming constant demand, token issuance will expand the supply, causing the token to depreciate, not to mention that the token issuance itself may affect the market's demand for the token. Therefore, Cronos' proposal initially faced opposition from the community.

The community voting on the original proposal was scheduled for March 3 to March 17, and as of March 16, the votes for and against were still evenly matched, but by the end of March 17, the percentage of approving votes surged, and according to mintscan data, the proposal was ultimately passed by a margin of more than 3:1.

For this situation, the community found that the overwhelming voting result was due to the fact that Crypto.com and Cronos actually control 70% to 80% of the voting rights (the voting rights are calculated based on the CRO tokens held). The reason why the votes for and against were evenly matched earlier was that only Starship and Falcon Heavy nodes controlled by Crypto.com were participating, and the decisive overwhelming vote was due to the fact that nodes such as Electron, Antares and Minotaur IV stepped in at the last moment.

Cronos reappears with a divine operation: Destroy another 50 million CRO

Surprisingly, after the token issuance proposal was passed, Cronos posted on the social platform X on March 17 stating that it had put forward a new proposal to destroy 50 million CRO.

However, this move by the official did not appease the community's anger, as the community felt that after forcing the community to agree to the issuance of 70 billion tokens, it turned around and proposed to destroy 50 million tokens, which was only 0.07% of the issuance amount, which was a great contempt and provocation to the community.

CRO first rises and then falls

According to CMC data, the CRO token rose briefly on the 17th when the proposal was passed, but soon after it began a more violent decline, and is currently quoted at $0.0772, down 6.3% in the last 24 hours.