Hi all,

Jerry’s Pool is voting NO on the proposal to “unburn” and allocate a large amount of $CRO to the Cronos Strategic Reserve.

While such a fund could, in theory, support wider ecosystem growth, this proposal lacks critical details and raises concerns that cannot be ignored, and as one of the larger validator nodes on the chain, it is my responsibility to vote accordingly with the will of my delegators until further amendments are made to the proposal.

Key reasons:

1. No Clear Fund Allocation Plan The proposal does not specify how the newly minted CRO will be allocated. There are vague mentions of the creation of “Cronos ETFs” and tapping institutional liquidity, but no real breakdown of who controls the funds, how they will be used, or what oversight exists. Without transparency, it is impossible to evaluate whether this will truly benefit $CRO, or if the funds will be used without meaningful impact.

2. Weaker Chain Security The reserve funds will not be staked, lowering the bonding ratio and reducing chain security, opening it up to economic attacks.

3. $6 biiiiiiillliooon dollars At the current price, this proposal mints approx. $6 biiiiiiiillion worth of CRO. There’s no solid justification for why this amount is needed, or how it aligns with Cronos’ long-term sustainability. Massive supply increases to the tune of $100M a month is going to need some utterly solid reasoning with numbers to back it up. I mean, why 70B, if not for maximum headline-grabbing impact?

4. Unanswered questions Is the total rewards cap still 5 billion? Are community pool and quarterly burns still being scheduled? Are there any other yet-unannounced changes to the tokenomics? The proposal is also a clear example of the term “burn” being used too liberally backfiring, where the decisions to “burn” CRO in the past are usually accompanied with plenty of fire emojis to represent a permanent reduction in supply, but now the team wants to undo it entirely. Rather framing it as a simple token revamp, this move has damaged the trust of token holders who believed in the narrative.

What I would like to see:

• More information on the exact allocation plan: who will control the funds, how they will be used, and what oversight will be in place. Governance safeguards to prevent misuses.
• A guarantee that any rewards or benefits from the reserve will eventually always be redistributed back to actual users across the three Cronos chains.

Without clear commitments on these points, the long-term risks outweigh the potential benefits.

In this current reality, the crypto space is currently filled with questionable tokens designed primarily to enrich insiders or political entities. While we trust Cronos Labs as the steward of $CRO to not fall into the same category, the proposal evokes a pattern of creating massive amounts of value with a lack of transparency and unknown amounts of accountability, which is a haunting sign.

And finally as a general reminder, your vote matters too regardless of your stance on this prop. Delegators can override my vote, and I encourage you to take an active role in this decision.

Thank you for your continued support in The Pool, and let’s keep on producing blocks for the near future.

Sincerely, Jerry Chong.