Crypto.com Exchange Wants to Restore $5 Billion in Previously Burned CRO Tokens

Cronos, the token and blockchain ecosystem linked to Crypto.com exchange, has unveiled a controversial proposal to resurrect 70 billion CRO tokens it famously burned back in 2021. Dubbed “The New Golden Age for Cronos,” this governance plan aims to restore the original 100 billion token supply, channeling the reissued tokens into a “Strategic Reserve” escrow wallet.

The tokens would vest monthly over a decade, fueling a $5 billion initiative at current CRO prices of $0.08 cents per token. The goal? Bolster U.S. crypto dominance, supercharge ecosystem growth, and even pave the way for a CRO exchange-traded fund (ETF). Yet, while the ambition is lofty, the backlash from the Crypto.com community has been immediate and fierce, with many seeing this as a betrayal of a defining moment in CRO’s history.

The original 2021 burn was a celebrated milestone for the CRO faithful. By slashing the token supply from 100 billion to 30 billion, Crypto.com ignited a scarcity-driven rally that saw CRO’s price soar from $0.06 cents to $0.25 cents in mere weeks. It was a strategic masterstroke that cemented trust and optimism among the CRO token holders. Fast forward to today, and the proposal to undo that burn has left many feeling blindsided. Critics argue that reissuing 70 billion tokens threatens to dilute value, unraveling the scarcity that once propelled CRO’s meteoric rise. In addition, it destroys any future burns, as now if the burns can be undone in the future, they are meaningless. With the governance vote now live and set to conclude on March 17, there is a lot of tension in the air.

A Community Divided and a Vote in Play

Reactions across social platforms paint a vivid picture of discontent. One vocal user captured the sentiment bluntly: “This is the opposite of what #CROfam wants. The 2021 burn was a landmark moment for #CRO, a signal of commitment to scarcity and growth. Undoing it now feels like a step backward, diluting our trust and the chain’s potential.”Another wrote, “Reissuing 70 billion $CRO coins with a “5 year lockup” then saying there is a linear vesting period. Please explain how this is not just diluting the supply. Who exactly is getting this 70 billion new coins? Explain why this is beneficial to the early #CRO coin investors.”

These aren’t isolated gripes—early voting data shows 86% of participants opposing the proposal as of Monday, with just 4.68% in favor and 8.6% abstaining. The numbers could shift if a heavyweight voter sways the tide before the deadline, but for now, the community’s stance is overwhelmingly skeptical.

On the flip side, Cronos envisions a grand future with this $5 billion war chest. The team claims the Strategic Reserve will attract billions of new users, integrate CRO into institutional liquidity pools, and fund ecosystem expansion. The prospect of a CRO ETF adds an intriguing layer, potentially bridging the gap between decentralized finance and traditional markets. Interestingly, despite the uproar, CRO’s price has ticked up 8% in the past 24 hours, riding a broader market wave. This suggests that while sentiment is sour, market dynamics might not fully align with the community’s mood just yet.