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- Cronos proposes reissuing 70 billion CRO tokens burned in 2021 to establish a strategic reserve for long-term ecosystem growth.
- The plan aims to enhance Cronos’ development, incentivize builders, and support new projects while sparking mixed reactions from the crypto community.
Cronos Chain, a Layer-1 blockchain created by Crypto.com, has made headlines yet again with a proposal to reissue 70 billion CRO tokens that were previously burned.
By use of a strategic reserve managed in a custodial wallet, the action seeks to restore the overall supply to 100 billion CRO. The community has responded differently to the proposal, particularly considering the quite large sum involved.
🚨JUST IN: @CRONOS_CHAIN, THE L1 BLOCKCHAIN BY CRYPTO(.)COM, PROPOSES REISSUING 70B BURNED TOKENS INTO CRONOS STRATEGIC RESERVE CUSTODY WALLET TO RESTORE THE TOTAL SUPPLY TO 100B $CRO
— BSCN Headlines (@BSCNheadlines) March 3, 2025
Why Does Cronos Want to Restore 70 Billion Tokens?
Token burns are typically used in the crypto space to lower supply, boost scarcity, and eventually help to support the value of an asset on the market. But Cronos’s decision to reverse the action begs serious concerns.
The official proposal is that the reissue will constitute the Cronos Strategic Reserve. The Cronos ecosystem will be supported in development by this fund, which also aims to incentivize developers by strengthening their blockchain systems. With distributions progressively every month, the reissued tokens will be kept in a custodial wallet with a 10-year locking system.
On the other hand, CNF previously reported that Cronos has just added a new capability through its Layer-2 network, allowing Ethereum users to make prepaid card withdrawals more conveniently.
More effective crypto-to-fiat transactions are made possible by this integration value for Crypto.com users. This indicates that the Cronos team is always seeking means to maximize the value of their ecosystem.
Crypto.com’s Grand Vision and the Community’s Concerns
This is not merely platitudes. Crypto.com itself has big plans, including introducing a CRO-based ETF in the fourth quarter of 2025. They want to create several services appealing to both institutional and individual investors using this strategic reserve.
Moreover, their most recent road map contains a list of several new offerings set for the first quarter of 2025. This suggests that the token reissuance serves not only to boost liquidity but also as a long-term goal meant to create a stronger ecosystem.
Not everyone, nevertheless, agreed with this decision. A few members of the community questioned how it would affect the value of CRO on the market. Token burning is generally regarded as a deflationary tactic advantageous for asset holders. Given the supply returning to its normal level, there are questions over future selling pressure.
CRO Surges Despite Controversial Decision
Despite the controversy surrounding the proposal, the price of CRO has actually increased significantly. CRO is swapped hands at about $0.08937 as of press time, up 21.57% over the last 24 hours. This increase has also driven its market cap to surpass the $2.3 billion mark.
This is such an intriguing phenomenon. Usually, news of a token reissuance causes a negative reaction, but the market seems to be reacting to this as a move with long-term advantages. Investors may view this project as part of Cronos’ readiness to attract more capital and raise the appeal of their ecosystem.
