After three previous effective token burns, Cronos has now put forward a fourth proposal of burning 50M $CRO worth over $4 million. Cronos has submitted this proposal and voting is open for 2 weeks, from March 17th to March 31st, 2025. If the proposal passes, only then the burning would be carried out. Presently, the community pool holds 70M $CRO, out of which 50M is set to burn.
Technical Details of the Fourth Proposal of Burning 50M $CRO
As per tokenomics, the total supply of $CRO is 30B and is currently trading at $0.085 currently. With this burning, Cronos is making an attempt to support $CRO price. Initiating a request for community pool expenditure governance with a target address is necessary to carry out the burn. The “dead” address is specifically being considered as a location to transfer community pool cash. This procedure is similar to earlier burning, which reduced yearly inflation from about 3% to around 2.4% after the halving. After debate and recommendation of this idea, an on-chain network upgrade governance proposal will be presented.
Effectiveness of Previous Burning Cycles
A similar burning proposal was first introduced last May. This governance proposal was meant to control the inflation being suffered by $CRO and regain its market price. 50M $CRO was periodically sent to the community pool at the Cronos POS Chain protocol level and burnt to complete the cycle.
To put it in a nutshell, a fourth proposal of Cronos to burn 50M $CRO is now up for voting. Voting is open for 2 weeks and the approval of the proposal depends on it. Historically, the burning process has been good for $CRO, so Cronos is optimistic this time too.
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Author: NixCoin