Crypto.com Enforces Controversial Decision: 70 Billion CRO Will Be Newly Created

On Sunday, it looked as if Crypto.com’s controversial proposal to create 70 billion CRO might fail. These tokens were burned in 2021—supposedly removed from circulation forever. But despite community resistance, the decision was pushed through.

During the vote from March 2nd to March 16th, the yes votes were only slightly ahead, but the quorum of 33.4% was not reached. That suddenly changed on Sunday at 14:00 UTC: 3.35 billion CRO votes landed in the yes camp, the quorum was broken, and the proposal passed. The final result: 61.18% yes, 17.61% no, 20.11% abstention, 0.11% veto—with a voter turnout of 70.18%.

The sudden surge in votes came from large validators controlled by Crypto.com, which hold 70–80% of the voting power

As of March 10th, only two of their validators—Starship and Falcon Heavy—had voted in favor. 77.97% of validators opposed the vote, but that didn’t matter. In the end, three other Crypto.com validators (Electron, Antares, Minotaur IV) joined, sources confirm.

Two smaller independent validators, Cosmostation and Polkachu.com, also voted in, but had little influence. “Pure disappointment,” one large token holder wrote on Telegram. “They pushed through their votes at the last minute and set a dangerous example.” Crypto.com has not commented on the allegations.

What happens now?

With the decision, Crypto.com’s path is clear: Tomorrow, the Cronos blockchain will be updated and 70 billion new CRO will be created, which will be released over five years. Among other things, they are intended to support a potential CRO ETF.

But that’s not all: One day after the vote, the team presented a new proposal – to burn 50 million CRO (0.07% of the new tokens). This follows three previous burns of the same size. “A slap in the face to all CRO holders,” wrote one validator on Telegram. “First create 70 billion new ones and then burn 50 million – how brazen is that?”

The next step

Voting on the new proposal will run for two weeks. Tensions remain high in the community, as many no longer trust Crypto.com’s course.

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(Featured image by Kelly Sikema via Unsplash)

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