Crypto.com Faces Backlash Over 70B CRO Token Burn Reversal
Crypto.com faces backlash after reversing a 70B CRO token burn. Community raises concerns over governance, vote control, and decentralization.
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Coinfomania News Room
Crypto.com is under pressure after a governance vote reversed a 70 billion CRO token burn that was initially promoted as a move toward decentralization. The decision has sparked widespread criticism, with many questioning the fairness of the voting process and the level of control the exchange holds over the Cronos blockchain.
The decision to reissue 70 billion CRO has led to strong reactions from the community. Many believe the reversal contradicts the original promise of decentralization made in 2021. Several users have accused Crypto.com of influencing the vote, raising concerns about the legitimacy of its governance system.
Crypto.com CEO Kris Marszalek addressed the company’s financial and regulatory position on X but did not directly respond to criticism over the token re-issuance. Some users questioned the move, with one commenting, “If the company is profitable, why not support the market instead of minting more tokens? This feels like a step backward.”
The 2021 Token Burn and Its Reversal
In February 2021, Crypto.com announced the burn of 70 billion CRO tokens, calling it “a crucial step toward decentralization.” The burn was meant to prepare for the CRO mainnet launch, with 59.6 billion tokens burned immediately and the rest allocated for ecosystem growth and network incentives.
Now, four years later, the reversal has raised doubts about the original intent behind the burn. The decision to mint an equal amount of CRO back into circulation has led to accusations that Crypto.com’s governance structure may not be as decentralized as previously claimed.
Allegations of Vote Manipulation
On March 2, a proposal was introduced to create a Cronos Strategic Reserve by minting 70 billion CRO, effectively restoring the token supply to its original level. The vote opened on March 3, receiving heavy criticism from community members. Many urged others to reject the proposal, with one user stating,
“Reversing the burn goes against everything the project stood for. This isn’t what the community wants.”
Despite the backlash, the final vote showed overwhelming support for the proposal, sparking accusations of manipulation. A user on GitHub expressed frustration, writing, “The vote passed at the last minute, and it’s obvious why. When one entity holds the majority of voting power, can we even call this governance?”
According to reports from Laura Shin’s Unchained, Crypto.com is believed to control between 70% and 80% of the total voting power. If accurate, this would mean that community votes had little impact on the outcome of the proposal.
Crypto.com Announces AMA to Address Concerns
Following the backlash, Crypto.com scheduled an ask-me-anything (AMA) session for March 25, where the company is expected to address concerns over the token burn reversal and governance structure.
CEO Kris Marszalek confirmed the event on X, writing, “Looking forward to speaking with the community next week. We value the feedback and will be answering key questions.” The post also included the hashtag “MakeCROGreatAgain.”
The AMA may provide a platform for Crypto.com to explain its reasoning, but questions remain about how much influence the community truly has over decisions on the Cronos blockchain.
Coinfomania News Room
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