Crypto.com’s Controversial Token Minting Proposal Approved Amid Criticism
Crypto exchange Crypto.com faced backlash after a last-minute voting surge approved its plan to mint 70 billion CRO tokens.The proposal, which aimed to create a Cronos Strategic Reserve, initially struggled to meet the 33.4% quorum. However,a sudden influx of 3.35 billion CRO votes in the final hours secured a 61.18% approval.
The plan involves reversing a 2021 token burn, which was meant to permanently remove the same number of tokens from circulation. Crypto.com argued that this move would support the Cronos ecosystem’s long-term growth and fund initiatives like AI applications and a CRO-based ETF.
The newly minted CRO will be held in an escrow wallet and released over five years. Strict controls will be in place to prevent inflation from affecting validator rewards. Critics, though, argue that reviving burned tokens undermines trust and raises decentralization concerns.
- Most independent validators opposed the plan.
- Crypto.com’s validators, including Starship and Falcon Heavy, tipped the scales in favor.
- A few independent validators, like Cosmostation, supported the proposal but had minimal influence.
Some CRO holders are concerned that Crypto.com’s last-minute votes set a precedent for projects with validator control to push decisions through despite opposition. The proposal’s approval has led to frustration among CRO holders,with some calling it a betrayal of the original burn commitment.
On the same day voting ended, Crypto.com proposed burning 50 million CRO, a mere 0.07% of the newly minted supply. This move drew further criticism. CRO has since slid over 3% to $0.08.Crypto.com did not respond to requests for comment.
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