Cronos Community Overwhelmingly Backs Revenue-Funded Burn and Buyback Plan

Cronos has made a significant move in its tokenomics strategy, with its community voting overwhelmingly in favor of a plan to burn 228 million CRO and fund monthly on-chain buybacks of the token. The vote, which closed on October 3, saw 99.78% of participating votes backing the proposal. This move is notable because it ties the burn program to actual revenue from two Cronos Labs products, the trading app Ult and Cronos Launch, rather than using treasury reserves or inflated emissions.

This approach is similar to that used by public companies, which often return cash to shareholders through buybacks when they think their own stock is undervalued. The revenue for the buybacks will come from customers paying for using Ult and Cronos Launch, and every monthly buyback will post its transaction hash on-chain, allowing anyone to verify the purchase and check the price it was executed at.

The move is seen as a positive development for CRO holders, who have been starved of a tokenomics story that isn't just about reducing emissions. The token has already gained 9.6% in the week leading up to the vote, trading near €0.0590 on October 1. However, the success of the buyback program will depend on the trading volume of Ult, which will need to generate enough fees to make the buyback more than a rounding error.