Cronos Labs has opened a governance proposal on GitHub that would direct 100% of product revenue from Ult and Cronos Launch to buying back CRO on the open market and burning the tokens. The plan calls for monthly on-chain buybacks and burns, with every transaction hash made public to create a direct link between product revenue, CRO repurchases, and supply reduction.
The proposal would replace an earlier revenue allocation model under the previously approved “New CRO Era” plan, which had split product revenue across staking yield, growth and user acquisition, buybacks and burns, and R&D and operations. Under the new proposal, operating, infrastructure, and growth costs would instead be covered by existing funds.
Cronos Labs also said it plans to use its strategic reserve to support future Cronos POS staking rewards as CRO inflation emissions decline under the prior framework. The proposal says current reward parameters would be maintained, while staking methods, lock-up periods, and the reward structure would stay unchanged. The measure is still in the discussion stage and would later move to an on-chain governance vote. Voting would last 14 days, with a quorum of 33.4% of staked CRO and approval requiring more than 50% of non-abstaining votes.
On Sept. 19, Cronos Labs opened a governance proposal on GitHub to direct 100% of product revenue generated by Ult and Cronos Launch to buying back CRO on the open market and burning the tokens.
Monthly on-chain buybacks and burns
Under the proposal, buybacks and burns would be carried out on-chain every month. The hash for each transaction would be disclosed, aiming to create a direct mechanism linking product revenue, CRO buybacks, and a reduction in supply.
The proposal says Ult went live on Sept. 17, while Cronos Launch launched on Sept. 15.
Revenue allocation plan would be replaced
An earlier proposal titled “New CRO Era” had planned to distribute product revenue across several areas, including staking yield, growth and user acquisition, buybacks and burns, and R&D and operations. The new proposal would remove that revenue allocation model and instead send all of the revenue to CRO buybacks and burns, while operating, infrastructure, and growth expenses would be covered by existing funds.
Strategic reserve to back staking rewards
At the same time, Cronos Labs said it plans to use its strategic reserve to support future Cronos POS staking rewards. As CRO inflation emissions gradually decline under the earlier plan, the strategic reserve would be used to supplement staking rewards and maintain the current reward parameters on Cronos POS.
The proposal says the staking method, lock-up period, and reward structure would remain unchanged.
Next step is an on-chain vote
The proposal is currently in the discussion stage and will later be submitted for an on-chain governance vote. The voting period would last 14 days. Quorum is set at 33.4% of staked CRO, and the proposal would need more than 50% of non-abstaining votes in favor to pass.
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