Cronos Labs Proposes Allocating 100% of Product Revenue to Buy Back and Burn CRO, with Strategic Reserve to Support Staking Rewards

BlockBeats news, September 19: Cronos Labs has initiated a governance proposal on GitHub to use 100% of product revenue generated by Ult and Cronos Launch for open market buybacks of CRO and burn them. The proposal plans to execute on-chain buybacks and burns on a monthly basis, with the hash of each transaction made public, to establish a direct mechanism of "product revenue—CRO buyback—supply reduction."

The proposal shows that Ult launched on September 17, and Cronos Launch launched on September 15. The previously passed "New CRO Era" proposal originally planned to allocate product revenue to multiple areas, including staking rewards, growth and user acquisition, buyback and burn, and R&D and operations; this proposal now intends to cancel revenue allocation and instead use 100% for CRO buyback and burn, with operations, infrastructure, and growth expenses covered by existing funds.

At the same time, Cronos Labs plans to use strategic reserves to support future Cronos POS staking rewards. As CRO inflationary emissions gradually decay under the previous plan, the strategic reserves will be used to supplement staking rewards in order to maintain the current Cronos POS reward parameters, with the staking method, lock-up period, and reward structure unchanged.

The proposal is currently in the discussion stage and will subsequently be submitted for on-chain governance voting. The voting period is 14 days, the quorum is 33.4% of staked CRO, and more than 50% of non-abstaining votes must be in favor for it to pass.