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Proposal #18

PASSED

  • TitleCommunity burn proposal - Burning 50 Million of CRO
  • Description

    # CRO community burn proposal

    ## Background

    As many of you will recall, back in May, the Cronos PoS chain (formerly known as Crypto.org Chain) passed a pivotal [governance proposal](https://www.mintscan.io/crypto-org/proposals/16) aimed at slowing down CRO token inflation.

    This proposal introduced a burning mechanism to reduce the overall inflation rate. The approach involves allocating a share of tokens generated through future inflation to a Community Pool, which are then periodically burned.

    ## The Burn Procedure Explained

    The focus of this proposal is to burn the current community pool balance and to discuss future methods of burning. This is step 6 in the token economic cycle diagram, which we've [previously discussed](https://medium.com/@crypto.org/a-straightforward-proposal-to-slow-down-cro-inflation-and-bring-it-closer-to-historical-levels-4355278f2de3). The idea here is to allocate a portion of tokens generated through emissions to a community pool, followed by a periodic burn. To perform this burn, a community pool spend governance proposal must be initiated. Funds can then be transferred to a dead address which no one controls (`cro1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqtcgxmv`) , effectively reducing the available token supply and concluding a single burning cycle.

    As of the time of writing, the community pool holds approximately [50 million CRO](https://www.mintscan.io/crypto-org/address/community-pool). This brings us to our next topic.

    ##When do we expect to burn?

    We propose to initiate the first-ever CRO Burn when the community pool hits the 50M CRO threshold. Achieving this target will not only be a pivotal moment in the upgrade of our protocol but will also serve as a harbinger for a more balanced and resilient token economic model for Cronos PoS.

    This inaugural CRO Burn is more than a one-off event; it's the first step in a broader, long-term strategy. As we plan for the future, we are exploring two potential paths to sustainably implement future CRO burns To fuel this conversation, we present two options:

    - Threshold-Triggered Burn: With this model, each time the community pool's CRO balance reaches a specified amount — e.g. 25M CRO—a burn event will be triggered. This approach ensures that burning is responsive to the rate of token accumulation, thus directly impacting the circulating supply in a dynamic manner.

    - Calendar-Governed Burn: Alternatively, we could stick to a time-based approach where burns occur at quarterly intervals, irrespective of how much CRO has been amassed in the community pool. This would provide a predictable and consistent burning schedule, which may be easier for token holders and market analysts to anticipate.

    Each option has its merits, and the choice between them will set the course for how the Cronos PoS chain manages its token supply moving forward. We are eagerly looking forward to the community's insights and active participation in making this decision.

    ## Let us know your thoughts.

    We cannot stress enough the importance of active community participation in shaping the future of Cronos PoS chain. Engage with your delegated validators and take part in the proposal discussions on the [Cronos Discord server](https://discord.com/invite/cronos) and [GitHub](https://github.com/crypto-org-chain/chain-main/discussions/1018). Your voice is crucial in evolving a vibrant and enduring token economy that benefits all CRO holders and the broader ecosystem.

    Previous blog: [A Straightforward Proposal to Slow Down CRO Inflation](https://medium.com/@crypto.org/a-straightforward-proposal-to-slow-down-cro-inflation-and-bring-it-closer-to-historical-levels-4355278f2de3)

    Initial Burn Proposal

    [https://github.com/crypto-org-chain/chain-main/discussions/941](https://github.com/crypto-org-chain/chain-main/discussions/941)

    Mint Scan official proposal

    [https://www.mintscan.io/crypto-org/proposals/16](https://www.mintscan.io/crypto-org/proposals/16)

    Community Pool

    [https://www.mintscan.io/crypto-org/address/community-pool](https://www.mintscan.io/crypto-org/address/community-pool)

  • TypeCommunity Pool Spend
  • Proposer
  • Total Deposit
    0.1 CRO
  • Submit Time
    04 Dec 2023 07:33:06 GMT
  • Deposit End TimeEnded
  • Voting Start Time
    04 Dec 2023 08:00:01 GMT
  • Voting End Time
    18 Dec 2023 08:00:01 GMT
Results

  • Abstain
    126,308,937.60930057 CRO
    (2.23%)
  • No
    37,583,049.60842026 CRO
    (0.66%)
  • No With Veto
    0 CRO
    (0.00%)
  • Yes
    5,486,198,850.9025012 CRO
    (97.09%)