Cronos CRO Supply Set to Surge 200% Following Last-Minute Governance Shift
Crypto governance is often seen as decentralized in theory but centralized in practice, with major token holders wielding the power to sway proposals at will.
A controversial proposal within the Cronos ecosystem concluded late Monday, securing community approval to increase the token supply from 30 billion CRO to 100 billion CRO over a 10-year vesting period.
The outcome marked a dramatic shift, as community sentiment had largely opposed the proposal for weeks. However, in the final hours of voting, a handful of influential CRO whales—large holders with significant voting power—intervened to tip the balance in favor of the supply expansion.
Cronos, which is closely linked to Crypto.com, initially proposed the reissuance of 70 billion CRO tokens that had been burned in 2021. The move aimed to restore the original 100 billion token supply under the guise of a “Strategic Reserve.”
The estimated $5 billion initiative (based on CRO’s $0.08 price at the time) was positioned as a catalyst for boosting U.S. crypto influence, funding ecosystem development, and supporting the launch of a CRO ETF. However, when voting commenced, backlash was swift—86% of early voters opposed the measure.
Despite the premise of a community-driven governance system, large token holders ultimately dictated the outcome. Initially, the proposal struggled to meet the 33.4% quorum required for approval. Then, at 14:00 UTC on Monday, a single 3.35 billion CRO vote swung the decision, meeting quorum and securing approval. The final results: 61.18% in favor, 17.61% opposed, 20.11% abstaining, and 0.11% vetoing.
Validator support also shifted. As of March 10, influential validator networks Starship and Falcon Heavy backed the proposal, though opposition remained strong at 77.97%, with 8.47% abstaining. By Monday, additional validators—Electron, Antares, and Minotaur IV—joined the push, leveraging a combined 3.2 billion CRO voting power to pass the measure.
The Cronos network upgrade, scheduled shortly after the vote’s conclusion, was executed on March 18 at 03:00 UTC, officially setting the stage for the token supply’s more than 200% expansion in the coming years.
Market reactions have been swift. CRO has dropped 8.5% over the past 24 hours, reflecting investor unease amid an otherwise stable crypto market.
