Crypto.Com witnessed a Ridiculous Governance Farce, as an Entity with 70% Voting Power Forced a 700 Billion CRO Coin Mint
Original Article Title: "Crypto.com Unfolds Absurd Governance Drama, Holding 70% Voting Power to Force 700 Billion CRO Mints"
Original Article Author: Symbol; Paper Box Ninja
Editor's Note: Several weeks ago, Crypto.com proposed a plan to reissue 700 billion burned CRO tokens. During the two-week voting period, the turnout fell short of the required threshold. If there wasn't enough participation by the deadline, the proposal would be scrapped. However, the day before the deadline, a sudden influx of 33 billion CRO token holders joined the vote, overwhelmingly pushing the proposal through. These sudden voters were none other than Crypto.com itself.
On Sunday, what seemed to be a potentially failing proposal—aimed at minting 700 billion CRO to offset the 2021 burn of an equivalent amount of tokens and reintroduce them to the market—struggled with a slim majority of affirmative votes over dissenting votes for most of the voting period (March 2 to 16) and failed to meet the required statutory quorum of 33.4%.
However, a dramatic turn of events unfolded at 14:00 UTC on Sunday, suddenly adding 33.5 billion CRO tokens to the affirmative votes, meeting the required votes for the proposal to pass by a significant margin. The final vote breakdown showed: 61.18% in favor, 17.61% against, 20.11% abstain, and 0.11% veto; with an overall turnout rate of 70.18%, far exceeding the minimum threshold of 33.4%.

The last-minute surge in votes ultimately led to the proposal's passage. Source: Mintscan
The sudden surge in votes has left many disgruntled CRO holders feeling even more aggrieved, with them viewing it as a further betrayal of trust between Crypto.com and its holders. "Very disappointed," remarked one CRO whale on Telegram, "they almost all voted at the last minute, setting a malicious precedent that could be emulated by other projects."
The crux of this controversy lies in the bulk of the votes coming from large validators operated by Crypto.com. Three independent sources indicate that these validators control between 70% to 80% of the total voting power. As of March 10, only two of its validators—Starship and Falcon Heavy—voted in favor. Despite the affirmative vote accounting for only 11.86%, far below the 77.97% opposition vote and 8.47% abstain, it did not prevent the proposal from being approved.
A representative from Crypto.com also declined to comment on this.

As of the March 10 voting results, data source: Mintscan
As the vote neared its end, three other validators controlled by Crypto.com—Electron, Antares, and Minotaur IV—also joined the yes camp; in addition, two smaller independent validators, Cosmostation and Polkachu.com, expressed their support, although their votes had little impact on the final result.

Final voting result, data source: Mintscan
With the proposal approved, the Cronos blockchain will undergo an upgrade tomorrow, during which 700 billion new tokens will be minted, while the 700 billion tokens burned in 2021 will remain out of circulation. These new tokens will be gradually released according to a five-year vesting plan and will undertake various functions, including initiating a potential CRO ETF.
However, the actions of the Crypto.com team did not stop there. On the day after the end of the vote, the team launched another proposal to burn 50 million CRO tokens (equivalent to 0.07% of the newly minted tokens) to supplement the previous three burns of the same amount. A CRO validator who voted against the re-minting proposal on Telegram indignantly wrote, "This is simply an insult to all CRO holders. How dare you propose to burn 50 million tokens on the same day you are reminting 700 billion tokens?"
The vote on this new proposal will continue for the next two weeks.
This article is a contributed piece and does not represent the views of BlockBeats.
You may also like

a16z Crypto Partner: Cash flow is the moat

Citibank releases "2030 Asset Tokenization Market Outlook": 6 major trends may create a $8.2 trillion market

The trillion-dollar valuation test: Are the three major super IPOs a celebration for tech stocks or a nightmare for the crypto market?

Morning Report | Digital Asset completes $355 million financing led by a16z Crypto; Meta completes operational separation from Manus

Morning News | CME Group launches Nasdaq Cryptocurrency Index futures; Asset management giant Janus Henderson strategically invests in Ethena

Bitcoin Layer 2 Network Botanix: Why Did We Choose to Dissolve?

Why did Oracle deliver the strongest financial report in history, yet its stock price fell?

When the P2P illicit funds from ten years ago turned into 60,000 bitcoins

Dialogue with OmenX Founder: Why does the prediction market need an evolution from "spot" to "derivatives"?

Galaxy in-depth report: Is Solana still worth paying attention to?

Young people in South Korea make a "final effort" in the epic bull market

The pricing controversy of Trade.xyz exposes the fatal weakness of Pre-IPO perpetual contracts

How much longer can Ethereum's last big buyer hold on?

World Cup 2026 Coming – WEEX Celebrates with $1M Prize Pool & Michael Owen Live

Morning Report | OpenAI has submitted an S-1 registration statement draft to the U.S. SEC; Morpho completes $175 million financing

Galaxy Deep Research Report: How Hyperliquid's HIP-4 Upgrade Changes the Landscape of Prediction Markets?

Latest research from 13 top universities including Cornell University: The current state, challenges, and misconceptions of the fusion of Crypto and AI



