Issuing 70 billion tokens out of thin air, abuse of "one vote veto power", and simply review the farce of CRO governance

Author: Azuma, Odaily Planet Daily

Crypto.com and its affiliated blockchain Cronos recently performed the most ridiculous governance farce in blockchain history - 70 billion tokens (CRO current total supply is 30 billion) were issued out of thin air. Although retail investors strongly opposed it, the voice of the community has completely turned into a joke in the face of the official "veto power".

Cause: Officials propose to issue 70 billion tokens again

The cause of the incident dates back to March 3.

On the same day, Cronos announced that it would propose a bold plan (truely bold) to reshape Cronos' golden age and invest a lot of money to support Cronos' roadmap (including ETFs) and the United States' ambition to become the capital of the cryptocurrency world. To support the plan, Cronos proposes to reverse the 70 billion token destruction incident in February 2021 (note that Cronos’ X announcement did not even dare to mention this number explicitly) and use that share to build Cronos’ strategic reserves.

Specifically, Cronos proposes to reissue the 70 billion CRO into the Cronos Strategic Reserves custodial wallet, bringing the total CRO supply back to 100 billion at the beginning of creation. The newly issued tokens will be locked for 10 years (calculated as the day of CRO creation), and will then be unlocked linearly on a monthly basis.

Progress: The community strongly opposes it, and the official suspected

of "making votes"

Obviously, no matter how well Cronos boasts about the proposal, such a large-scale issuance will inevitably lead to the dilution of the value of the CRO, which ordinary currency holders cannot ignore.

Mintscan governance voting records show that on the first day after the proposal began voting, the opposition rate of the proposal was as high as 95.7%, which can basically be said to have been extremely opposed by the community... However, this is useless.

As shown in the figure below, with the action of a certain mysterious force, it is difficult to reverse the opposition rate (red line) - temporarily ignore the upturn of the last green line.

The reason why it is called a mysterious force is that during most of the governance cycles from March 3 to March 17, the vote of favor always led the vote of opposition with a very unnatural weak advantage - it seems that the mysterious force once wanted to maintain a "illusion" with strong positive and negative opinions.

Climax: I won’t act at all now!

This inconsistent balance lasted until the end of the vote.

According to Cronos' governance rules (why do you have to do this set), in addition to the approval rate, the adoption of the governance proposal also requires that the voting participation rate exceeds the statutory ratio of 33.4%, and the voting participation rate of the proposal did not meet this condition at that time. In other words, even if the approval rate is higher at this time, the proposal cannot be passed.

So Cronos simply stopped acting - at the last moment, about 3.35 billion CROs entered the venue and voted in favor. This is also why the last green line in the picture above suddenly looks up.

According to UnChained's disclosure, three independent sources revealed that Crypto.com and Cronos actually control 70-80% of the vote.

The reason why the balance of power was maintained at the moment was that among the verification nodes controlled by Crypto.com, only Starship and Falcon Heavy took action, and at the last moment, three other verification nodes, including Electron, Antares and Minotaur IV, also left the market.

You can clearly see the huge difference between the vote rights of official strength and retail investors in the figure below.

Finally, the proposal was passed with the participation of official forces, and the 70 billion CRO will be officially cast and waited for entry into circulation in the future.

In response to this ridiculous governance farce, a large number of CRO holders expressed extremely disappointed attitudes, and some even said that this was an insult to the community.

Easter egg: Tell you what a real insult is!

Is this an insult? Cronos obviously doesn't think so.

After the above proposal was passed, Cronos made a high-profile publication and publication of another proposal on X, proposing to destroy 50 million CROs

• accounting for 0.07% of the 70 billion, which is a real insult!

According to the historical destruction records posted by Cronos, two periods of destruction will be performed each year, with each period of 50 million CROs, totaling 100 million CROs per year.

A community member joked: "It seems that only takes about 1,400 destructions to eliminate these 70 billion CROs. So you only need to wait 700 years to restore the current supply."

It still has to be Cronos, which may be the thinking of building a "century-old enterprise".