Crypto.com, a prominent cryptocurrency exchange, is under intense scrutiny after a last-minute governance proposal to mint 70 billion new CRO tokens was approved.
- The proposal impacts Cronos, a blockchain developed by Crypto.com to support decentralized finance (DeFi) and web3 applications.
Quick Take delivers key facts fast—concise, clear, and easy to read. Perfect for busy readers.
Key details:
- The proposal initially struggled to reach the required quorum of 33.4% but surged to approval after Crypto.com-controlled validators cast 3.35 billion CRO votes just before the deadline.
- The minting reverses a 2021 token burn intended to permanently reduce CRO’s supply. The new tokens will be stored in a strategic reserve wallet with a five-year vesting schedule.
- Independent validators largely opposed the move, but Crypto.com-affiliated validators decisively swung the vote.
CRO’s price fell more than 3% following the vote, sparking widespread community dissatisfaction and concerns about decentralization and trust.
Andre Cronje, a prominent crypto figure and founder of Sonic Blockchain, criticized the decision on Twitter:
Tomorrow Cronos goes from $2.5bn mcap to $8.5bn mcap with a single vote and all it needed was a single voter.
- mcaps are a meme.
- Decentralization doesnt matter, until it does.
- Immutability doesnt matter, until it does.
Andre Cronje, Sonic Blockchain on Twitter
This Quick Take article is published on BitPinas: Quick Take: Crypto.com Faces Backlash After Approving Minting of 70 Billion CRO Tokens
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