Cronos, the Layer 1 blockchain backed by Crypto.com, has approved a governance proposal to reissue 70 billion CRO tokens, valued at $5.6 billion, that were originally burned in 2021.
The approval effectively restores the total supply of CRO tokens to its original cap of 100 billion, with the newly minted tokens placed in a strategic reserve wallet under a multi-year vesting schedule.
According to the proposal, Crypto.com intends to leverage the reissued tokens to support future ecosystem growth, including filing for a CRO exchange-traded fund (ETF) to tap into increasing institutional interest in cryptocurrency.
Crypto.com’s Influence in CRO Vote Sparks Centralization Concerns
The decision has sparked criticism over centralization concerns, as Crypto.com-affiliated validators played a decisive role in securing approval.
Voting data from Mintscan revealed that while independent validators largely opposed the proposal, major validators Electron, Antares, and Minotaur IV, which have ties to Crypto.com, were instrumental in tipping the scales in favor of the reissuance.
Critics pointed to a last-minute surge of 3.35 billion CRO votes, which significantly altered the outcome.
The voting period, held from March 2 to March 16, initially saw a narrow margin between yes and no votes.
Additionally, the proposal struggled to reach the required 33% quorum until a late influx of votes pushed the participation rate to over 70%, ultimately securing approval.
The final vote breakdown showed 62.1% in favor, 17.6% opposed, 20.1% abstaining, and 0.11% vetoing.
Critics, including Andre Cronje, co-founder of Sonic, were quick to voice concerns about governance manipulation.
Cronje commented that with just one key voter, Cronos’ market cap could jump from $2.5 billion to $8.5 billion overnight, questioning the blockchain’s decentralization.
The proposal’s approval underscores the growing debate over governance transparency in blockchain ecosystems, particularly when centralized entities wield significant influence over decision-making.
The Cronos Chain, developed using the Cosmos SDK, went live in November 2021, and a Layer 2 Cronos zkEVM blockchain on Ethereum is also in development.
Currently, CRO has a circulating supply of 26.5 billion tokens, with a cap of 30 billion and a market valuation of $2.13billion.
Following the proposal, CRO’s price dropped to $0.080, losing over 7% in the past 24 hours, according to data from CoinMarketCap.
Crypto.com Can Now Expand Services to All European Economic Area Member States
As reported, Crypto.com can now officially expand its services to all European Economic Area (EEA) member states after receiving a Markets in Crypto-Assets (MiCA) license from the Malta Financial Services Authority.
The milestone makes Crypto.com the first major global crypto asset service provider to secure full MiCA approval, allowing it to operate across the EEA’s 30 countries.
More recently, the exchange launched stock and exchange-traded fund (ETF) trading for U.S. users in Pennsylvania, Ohio, Washington, and Arizona.
The company plans to expand the feature nationwide, offering zero-commission trades, fractional shares, and securities transfers within its app.
Crypto.com has also introduced an institutional trading platform in the United States, aiming to complement its existing crypto retail trading mobile application.
The new platform will offer more than 300 trading pairs and advanced trading tools tailored to institutional clients, signaling the company’s deeper push into Wall Street.
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