Cronos Wants to Burn More Than 228 Million CRO and Direct All Product Profits to Buying Back Tokens

• Voting is underway on the Cronos network on two proposals to change CRO tokenomics.
• The first proposes a one-time burn of 228 million CRO from the community pool.
• The second would direct 100% of revenue from Ult and Cronos Launch to buybacks and subsequent token burns.
• Voting on both proposals will end on October 3.

On the Cronos network, voting is underway on two proposals that would change the CRO supply governance mechanism and staking funding. One calls for a one-time burn of 228 million CRO from the community pool, while the other would direct all revenue from the Ult and Cronos Launch products to buy back and subsequently burn tokens.

228 million CRO to Be Burned From the Community Pool

The first proposal calls for transferring 228 million CRO from the community pool to a special “dead” address that no one can access. If approved, these tokens will be permanently removed from circulation.

This would be the fifth CRO burn under a mechanism that redirects a portion of tokens generated through issuance to the community pool. Previously, Cronos burned 50 million CRO four times — 200 million tokens in total. After the new proposal is implemented, the total amount of burned CRO will rise to 428 million.

To approve the proposal, at least 33.4% of staked CRO must participate in the vote.

100% of Product Revenue Proposed for CRO Buybacks

The second proposal would change the revenue distribution mechanism for Cronos Labs products. If approved, all revenue from Ult and Cronos Launch would be directed to buying CRO on the open market and subsequently burning the tokens.

Buybacks and burns are expected to take place monthly on-chain, and the hash of each transaction will be published. Operating expenses, infrastructure, and development costs, meanwhile, are proposed to be funded from existing capital.

Cronos Launch and Ult were launched on September 15 and 17, respectively. According to the proposal’s authors, their revenue should create a direct mechanism for reducing CRO supply: funds come in from the products, tokens are purchased with them, and then they are burned.

Strategic Reserve Will Fund Staking

A separate part of the second proposal is the use of the strategic reserve to fund future staking rewards in Cronos POS.

This is tied to the reduction in CRO issuance предусмотреним by proposal #1291 A New Era for CRO. At the same time, it is proposed that 100% of revenue from Ult and Cronos Launch be allocated to buybacks and burns, so these funds will not be used to finance staker rewards.

According to the proposal, the strategic reserve should become the source of funding for rewards as issuance declines. At the same time, the current staking parameters, reward rates, lockup levels, and bonus rates for delegators will remain unchanged.

The proposal’s authors note that, in this way, one mechanism will reduce the CRO supply, while another will ensure funding for staking rewards as issuance decreases.

Voting on both proposals will end on October 3.

As a reminder, earlier the quorum backed the decision to shut down the L1 ZetaChain and migrate ZETA to Solana.

Сообщение Cronos Wants to Burn More Than 228 Million CRO and Direct All Product Profits to Buying Back Tokens появились сначала на INCRYPTED.