The new Governance proposal by Cronos Labs, the team behind the Cronos blockchain linked to prominent cryptocurrency exchange Crypto.com, seeks to reissue 70 billion CRO tokens that were previously burned in 2021—and are collectively worth over $5.3 billion today.
It was hoped that the tokens could be used to create a “Cronos Strategic Reserve,” Piggybacking on the Potential United States crypto reserves Donald Trump has suggested this in the past few days.
Cronos Strategic Reserve was introduced as a reserve in A Cronos blog by CronosIf you would, “support the ambition” The goal is to make America the global capital for crypto while also helping the chain complete its ambitious roadmap.
Today, a proposal ambitious for voting was released on the Cronos governance forum.
The community is invited to vote on a bold plan to restore Cronos' Golden Age, with a massive investment allocated to support Cronos Roadmap (incl. its ETF) and America’s ambition to become… pic.twitter.com/7i06DnTx7T— Cronos (@cronos_chain) March 3, 2025
“In 2021, 70 billion CRO were burnt in one of the most significant burn transactions in history,” The chain’s staff wrote. “Under today's proposal, an equal number of tokens will be reissued on Cronos [proof-of-stake] into a Cronos Strategic Reserve escrow wallet, bringing the total supply back to the initial supply of 100 billion CRO.”
The proposal is successful, and the CROs will have a 10-year vesting period. They are then unlocked in a linear process. In the proposal, no details were provided about the future plans of the CROs set aside as a strategic reserves.
Most users of the Cronos Discord community and X’s (formerly Twitter) response were against the plan. “the optics on this are terrible,” While an X-user questioned, “How this is not just diluting the supply?”
Early voting, which has been completed by 16 of 100 active Cronos validators, is currently against the proposal of a strategic reserve with 95.7% of voting power—around 673 million CRO tokens worth—voting against, while just 3.45% of voting power has voted in favor.
Cronos Tokens and Governance: Not a New Idea Cronos tokens are not new. most recent proposal from November 2024, Proposal #28, was one proposal of a three-part community series that voted on the burning of even more CRO—the opposite of what the latest pitch entails.
In that proposal, CRO validators voted overwhelmingly in favor, with 95% of CRO voting power—more than 8 billion CRO worth—voting in favor of reducing CRO supply by 50 million tokens, valued around $9 million at the time.
The CRO token is now down by 8% to $0.076 in the past 24 hours. This token has fallen 92% from its previous high, $0.96 in November 2021.
Decrypt Crypto.com did not respond to our request for comments on the proposed proposal by the date of publication.
Andrew Hayward is the editor