Crypto exchange Crypto.com is under fire after a last-minute surge in votes secured approval for a controversial proposal to mint 70 billion CRO tokens. The decision has raised concerns about decentralization, governance transparency, and trust within the Cronos ecosystem.
Last-Minute Vote Secures Approval
According to Unchained, the proposal struggled to reach the 33.4% quorum threshold for most of the voting period. However, in the final hours, a sudden influx of 3.35 billion CRO votes pushed it over the line, securing 61.18% approval.
The proposal seeks to create a Cronos Strategic Reserve by effectively reversing a 2021 token burn that was originally intended to permanently reduce CRO supply. Crypto.com claims the newly minted tokens will be used to support long-term ecosystem growth, fund AI-driven applications, and potentially back a CRO-based exchange-traded fund (ETF).
The minted CRO will be locked in an escrow wallet and released over a five-year vesting schedule with strict emission controls to prevent inflationary pressure on validator rewards.
Community Concerns Over Cronos Decentralization
The decision has drawn heavy criticism, with many in the Crypto.com and Cronos communities arguing that reviving previously burned tokens undermines investor trust. Critics also claim that the move centralizes control in the hands of Crypto.com’s validators.
“Cronos is a centralized entity, and this vote proves it. Only Crypto.com’s core team would push for such a move.” — Community Member
Independent validators largely opposed the proposal, but Crypto.com’s own validators—including Starship, Falcon Heavy, Electron, Antares, and Minotaur IV—eventually tipped the vote in favor. Initially, only Starship and Falcon Heavy had backed the proposal, but three more Crypto.com-operated validators joined before voting closed. While a few independent validators, including Cosmostation and Polkachu.com, also supported the move, their influence was minimal compared to Crypto.com’s internal voting power.
A large CRO holder told Unchained that Crypto.com’s last-minute voting control sets a dangerous precedent, where projects with significant validator influence could force through controversial decisions, despite broader community opposition.
Immediate Fallout and Market Reaction
With the proposal now approved, the Cronos blockchain will undergo an upgrade to officially mint the 70 billion CRO tokens. However, frustration among CRO holders remains high, with some calling the decision a betrayal of the original burn commitment.
Adding to the controversy, on the same day the vote concluded, Crypto.com introduced a proposal to burn 50 million CRO—just 0.07% of the newly minted supply. The move has been widely criticized, with one validator calling it “a spit in all CRO holders’ faces.”
Meanwhile, CRO’s price has declined over 3%, trading at $0.08 at the time of writing. The token has been on a downward trend since the vote passed, reflecting investor discontent over the decision.
Crypto.com has yet to publicly respond to the backlash, and concerns over governance manipulation and centralization continue to dominate community discussions.
Looking Ahead
With the Cronos Strategic Reserve now approved, Crypto.com faces pressure to restore confidence among its user base. The coming months will be crucial in determining whether the move successfully strengthens the ecosystem—or further alienates the community amid governance concerns and market instability.
