The Cronos network is advancing a new governance proposal to redirect 100% of revenue from its Ult and Cronos Launch products into monthly CRO token buybacks and burns. The proposal, titled “Revenue-Backed CRO,” is currently open for voting and would shift staking reward funding to the network’s Strategic Reserve. This marks a significant shift from the previous revenue allocation model.
The Cronos network has placed a new governance proposal, titled “Revenue-Backed CRO,” before its community for a vote. The proposal, uploaded to the Cronos POS Governance Forum on Sept. 19, is currently open as Proposal #37 on the blockchain and will close on Oct. 3 at 02:02 UTC.
The initiative seeks to redirect all revenue generated from the Ult and Cronos Launch products into a single contract. The funds would be swapped for CRO on-chain with anti-slippage protections, and the purchased tokens would be sent to a burn address, permanently removing them from circulation. These burn events will happen monthly, though buybacks may occur more frequently, with each transaction hash made publicly verifiable.
This new model changes the revenue distribution established by governance proposal #1291, “A New Era for CRO.” Previously, revenue was split among staking yield, growth, buybacks, burns, and operations, with no allocation specifically for burns. The new proposal dedicates 100% of qualifying product revenue to buybacks and burns, leaving strategic initiatives and research to use existing funds.
As a result, the proposal designates the Strategic Reserve as the funding source for base and tier-locking staking rewards. Rates for delegator rewards, lock duration, and tier structure would remain unchanged under this plan.
The reserve stems from a controversial March 2025 governance vote where Cronos Labs proposed reissuing 70 billion CRO burned in 2021. Despite receiving 95.7% “No” votes initially, the measure passed on March 16, 2025, with 62.1% support after a last-minute shift.
However, the current Cronos burn proposal omits specific financial projections. It does not provide figures for expected revenue from Ult or Cronos Launch, nor does it estimate how many tokens could be burned. The document also lacks a mechanism for what happens if revenue is insufficient to support meaningful burns, and it does not specify limits on Strategic Reserve usage for staking.
The proposal requires a quorum of 33.4% of bonded CRO to pass, with at least 50% of non-abstain votes in favor. A “No With Veto” vote exceeding one-third of participating power would defeat the proposal. The vote follows a difficult period for the chain, which experienced a rollback of 10,961 blocks in September to reverse a Tectonic exploit worth $9.19 million in unlocated funds.
