Crypto.com’s Controversial Token Minting Plan Approved
Crypto.com faced backlash after a last-minute voting surge approved its plan to mint 70 billion CRO tokens. The proposal,initially struggling to meet the 33.4% quorum,saw a sudden influx of 3.35 billion CRO votes, securing a 61.18% approval.
This plan aims to create a Cronos Strategic Reserve. It reverses a 2021 token burn, reintroducing tokens previously removed from circulation. The company claims this will boost the Cronos ecosystem’s growth and fund AI projects and a CRO-based ETF.The newly minted tokens will be locked in an escrow wallet, released over five years. Controls will adjust CRO’s emission parameters to protect validator rewards from inflation.
Supporters say the move will fuel long-term growth.Critics, however, argue it undermines trust and decentralization. They fear it sets a precedent for projects with validator control to push through decisions despite opposition. The token burn was meant to be permanent. Now, the tokens will fund initiatives like AI apps and a CRO ETF. The reserve will follow strict rules to prevent inflation.
Most self-reliant validators opposed the plan. Yet,Crypto.com’s validators, like Starship and Falcon Heavy, tipped the scales.This sparked concerns about the network’s decentralization. Some see it as a betrayal of the original burn commitment. The token’s price dipped over 3% to $0.08 post-vote. The company’s validators, including Starship and Falcon Heavy, backed the proposal. Onyl a few independent validators supported it.A large CRO holder told <a href="https://twitter.com/Wyll_BBK/status/1896452917722296775. The company's validators, including Electron and Antares, ensured its passage. The sudden approval raises questions about the network's governance. The community is divided. Many feel it centralizes power.
Unchained reported that Crypto.com’s validators’ late backing was crucial. This move could set a dangerous precedent. It suggests projects can override community wishes with enough validator control.
On the same day, Crypto.com proposed burning 50 million CRO—just 0.07% of the new supply. A validator called this a “slap in the face” for CRO holders. The plan’s approval highlights governance issues. It shows how projects might force changes, ignoring community input. The token’s value fell, reflecting investor unease. The company’s validators’ late backing was pivotal. This undermines the network’s decentralization. The community is frustrated. They believe it weakens the network’s autonomy. The company’s validators’ votes were key.They claim it centralizes power.
