The Cronos burn proposal would direct all revenue from two products into CRO buybacks and burns. Staking rewards would instead draw funding from the Strategic Reserve under a governance vote.
What the Cronos burn proposal would change
The proposal document titled “Revenue-Backed CRO” has been uploaded on the Cronos POS Governance Forum on Sept. 19, 2026. This proposal is currently open to voting via Proposal #37 on the blockchain and will close on Oct. 3 at 02:02 UTC.
The Cronos burn proposal aims to redirect the revenue generated by both Ult and Cronos Launch into a single contract. Ult was launched on Sept. 17, whereas Cronos Launch was opened on Sept. 15.
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According to the contract, the revenue generated will be swapped into CRO on-chain with protection against slippage. The purchased tokens will be sent to the burn address and taken out of circulation.
The burns will take place monthly; however, the buyback may happen more frequently. It is also mentioned that each burn transaction hash will be publicly available for verification.
What Changes Under the Cronos New Revenue Model
The Cronos burning proposal alters the revenue distribution mechanism used in the previous governance decision. Governance proposal #1291 titled “A New Era for CRO” was dividing revenue into four categories: staking yield, growth, buybacks, and burns, and research and operations.
In contrast, the previous proposal did not allocate any percentage to token burns. In comparison, the current proposal will dedicate 100% of qualifying product revenue to the purchase and burning of CRO tokens.
With this change, there will be no product revenue assigned for staking yield. This way, the Cronos burning proposal considers Strategic Reserve as the funding source for the base and tier-locking staking.
Rates for delegator rewards, lock duration, tier structure, and bonuses will remain unchanged. Growth and research expenditures will use existing funds.
How Cronos Built Its 70 Billion CRO Strategic Reserve
The Strategic Reserve goes back to the March 2025 governance vote. Cronos Labs proposed reissuing 70 billion CRO burned in February 2021 and restoring the overall supply back to 100 billion.
These tokens were put into an escrow wallet. According to crypto.com, besides the five years that had passed since the initial minting on Ethereum, the escrow also included a five-year lock-up.
The proposal was highly unpopular from the very beginning. The vote saw 95.7% of the participating voting power against the plan, as shown in Mintscan records.
The proposal passed on March 16, 2025, following some last-minute votes. Support stood at 62.1%; participation was about 70%.
The proposal for burning CRO is currently used to connect the reserve directly with staking funding. However, it does not say how much of the reserve could be used and how long withdrawals could continue.
What Could Affect the Cronos Burn Proposal Vote
However, the proposal has not provided any financial figures regarding the Ult and Cronos launch. Additionally, there is no figure provided regarding how many CRO coins could be pulled out of circulation through buyback operations.
The Cronos burn proposal does not explain what will happen if product revenue is insufficient for generating any significant amount of burning. It does not specify the mechanism of reserve-funded staking in this situation.
The document includes a disclaimer stating that forward-looking statements may differ from actual outcomes. This applies to projected revenue, burns, and other planned results.
For the proposal to be approved, there needs to be a quorum equal to 33.4% of bonded CRO. Also, at least 50% of non-abstain votes need to be in favor of the proposal.
In case more than one-third of the participating voting power is “No With Veto,” then the Cronos burn proposal will be defeated, and the deposit will be burned. If delegators did not vote, then their votes will be the same as those of their validators.
The decision takes place after difficult times for Cronos. On September 8, the chain rejected 10,961 blocks to roll back the Tectonic exploit worth $9.19 million in unlocated funds at that time.
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