Cronos Burns 230 Million Tokens, Commits 100% of Ult and Launch Revenue to Buybacks
Summary
- Cronos said it had permanently removed 228 million Cronos tokens from circulation by transferring them from the community pool to a burn address.
- It said 100% of revenue generated by Cronos Ult and Cronos Launch will be used for token buybacks and monthly burns, with all transaction hashes disclosed on-chain.
- Cronos said it would maintain staking rewards at current levels and use strategic reserves to fund them even if new issuance declines.
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Cronos, the native token of U.S. cryptocurrency exchange Crypto.com, has burned 230 million of its own tokens.
Odaily reported on Oct. 4 that the community recently approved two governance proposals to revamp Cronos tokenomics.
The first proposal calls for transferring 228 million Cronos tokens from the community pool to a burn address, permanently removing them from circulation.
The second proposal commits all revenue generated by Cronos ecosystem services Cronos Ult and Cronos Launch to token buybacks. The repurchased Cronos will be burned each month, and hashes for all buyback and burn transactions will be disclosed so the transactions can be verified on-chain.
The staking reward system will remain at current levels. Cronos said those rewards would be paid from strategic reserves even if new Cronos issuance declines in the future.
Cronos said it would use 100% of revenue from Ult and Launch to buy tokens on the market and burn them. It also said the buybacks and burns would be conducted on-chain every month and that all transaction hashes would be disclosed.
According to CoinMarketCap, Cronos was trading at about $0.067 as of Oct. 4, up roughly 1.78% from a day earlier.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul