Original | Odaily Planet Daily ( @OdailyChina )
Author: Azuma ( @azuma_eth )
Crypto.com and its affiliated blockchain Cronos recently performed the most ridiculous governance farce in the history of blockchain - 70 billion tokens (CROs current total supply is 30 billion) were issued out of thin air. Despite the strong opposition from retail investors, the voice of the community has become a complete joke in the face of the official veto power.
Cause: The official proposed to re-issue 70 billion tokens
The cause of the incident can be traced back to March 3.
On the same day, Cronos announced that it would propose a bold plan (really bold) to reshape Cronos golden age and invest a lot of money to support Cronos roadmap (including ETFs) and the United States ambition to become the capital of the cryptocurrency world. To support the plan, Cronos proposed to reverse the 70 billion token destruction event in February 2021 (note that Cronos X announcement did not even dare to explicitly mention this number) and use the share to build Cronos strategic reserve.
Specifically, Cronos proposed to reissue the 70 billion CRO to the Cronos Strategic Reserve Custody Wallet, restoring the total supply of CRO to 100 billion at the beginning of the creation. The newly issued tokens will be locked for 10 years (calculated from the date of CRO creation), and then unlocked linearly on a monthly basis.
Progress: The community strongly opposes, and the authorities are suspected of vote manipulation
Obviously, no matter how high-sounding Cronos touts the proposal, such a large-scale issuance will inevitably lead to the dilution of CROs value, and ordinary coin holders cannot ignore this.
Mintscan governance voting records show that on the first day after the proposal began voting, the proposal had an opposition rate of 95.7%, which can be said to have been extremely opposed by the community ... However, this is of no use.
As shown in the figure below, with the intervention of a mysterious force, the approval rate (green line) has difficulty reversing the opposition rate (red line) - ignore the last upward trend of the green line for the time being.
It is called a mysterious force because during most of the governance cycle from March 3 to March 17, the votes in favor always led the votes against by a very unnaturally narrow margin - it seemed that the mysterious force once wanted to maintain the illusion that the pro and con opinions were very intense.
Climax: This is totally over!
This uneasy balance lasted until the end of the voting.
According to Cronos’ governance rules (why bother with this?), in addition to the approval rate, the passage of a governance proposal also requires a voting participation rate exceeding the statutory ratio of 33.4%, and the voting participation rate of the proposal did not meet this condition at the time . In other words, even if the approval rate was higher at this time, the proposal would not pass.
So Cronos simply stopped pretending - at the last minute, about 3.35 billion CROs directly entered the market and voted in favor. This is why the last green line in the above picture suddenly rose.
According to UnChained , three independent sources revealed that Crypto.com and Cronos actually control 70-80% of the voting rights.
The balance was maintained before because only Starship and Falcon Heavy were the verification nodes controlled by Crypto.com, and at the last moment three other verification nodes, including Electron, Antares and Minotaur IV, also withdrew.
You can clearly see the disparity between official power and retail investor voting power in the picture below.
In the end, the proposal was passed “safely” with the participation of official forces, and 70 billion CRO will be officially minted and wait to enter circulation in the future.
In response to this ridiculous governance farce, a large number of CRO holders expressed extreme disappointment, and some even bluntly stated that this was an insult to the community.
Easter egg: Let me tell you what a real insult is!
Is that an insult? Cronos obviously doesn’t think so.
After the above proposal was passed, Cronos announced another proposal on X, proposing to destroy 50 million CROs - 0.07% of 70 billion, which is a real insult!
According to the historical destruction records posted by Cronos, two destruction phases will be carried out each year, 50 million CROs in each phase, totaling 100 million CROs per year.
A community member joked: “ It looks like it will only take about 1,400 destructions to eliminate the 70 billion CRO. So it only takes another 700 years to restore the current supply. ”
It has to be Cronos. This may be the thinking behind building a “century-old enterprise”.
