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.
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