Third CRO Community Burn Proposal Seeks to Remove Additional 50 Million $CRO from Circulation
The proposal to burn 50 Million $CRO aims to enhance the token’s value by permanently reducing its circulating supply
Key Takeaways:
The proposal seeks to burn an additional 50 Million $CRO, following two previous burns totaling 100 Million $CRO.
If approved, this third burn will bring the total removed from circulation to 150 Million $CRO.
Community participation and feedback are encouraged as the proposal enters the governance voting phase.
Introduction
The Third CRO Community Burn proposal (#1093) on the Cronos POS Chain seeks approval to remove an additional 50 Million $CRO from circulation. This burn follows two previous community-led burn initiatives that eliminated 100 Million $CRO in total. If successful, this latest burn would result in a cumulative reduction of 150 Million $CRO, permanently lowering the circulating supply to boost the token’s scarcity and, potentially, its value.
Background
The CRO Community Burn mechanism was introduced as part of the Cronos POS Chain’s commitment to using emissions for the community’s benefit. A portion of the $CRO generated is allocated to the community pool and periodically burned. Currently, the community pool holds around 70 Million $CRO, with 50 Million $CRO targeted for this third burn. This ongoing mechanism allows for the periodic reduction of circulating $CRO, contributing to supply management and value support.
Technical Details
The burn will be executed through a "community pool spend" governance proposal, which moves 50 Million $CRO from the community pool to a "dead" address (cro1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqtcgxmv). This address is permanently inaccessible, meaning that the $CRO sent to it is effectively destroyed and removed from the total circulating supply. The community can monitor past burn events and circulating supply details on the Cronos POS chain’s burn information page.
Governance Votes and Options
The proposal will be subjected to community governance voting, with the following options for voters:
YES: Approve the burn of 50 Million $CRO from the community pool.
NO: Disapprove the proposal as it stands; feedback for adjustments is welcomed.
NO (VETO): Strongly oppose the proposal and its motivations.
ABSTAIN: Remain impartial on the proposal’s outcome.
For the proposal to pass, a quorum must be met, and fewer than one-third of the votes must be "No" or "Veto." Otherwise, the proposal deposit is forfeited.
Community Engagement
Active community involvement is essential to the future of the Cronos POS Chain. Community members are encouraged to discuss this proposal with their validators and provide feedback on platforms like Discord and GitHub. Each vote contributes to a more robust and community-driven approach to $CRO’s value management.
For further details, view the full discussion here.