Cronos Labs Proposes Allocating 100% of Product Revenue to Repurchase and Burn CRO, Using Strategic Reserves to Support Staking Rewards

Cronos Labs has launched a governance proposal on GitHub, proposing to allocate 100% of product revenue generated by Ult and Cronos Launch to open market repurchases of CRO, followed by token burning. The proposal calls for monthly on-chain repurchases and burns, with each transaction hash made public, to establish a direct "product revenue — CRO repurchase — supply reduction" mechanism. It notes that Ult launched on September 17, while Cronos Launch went live on September 15. The previously approved "New CRO Era" proposal originally planned to distribute product revenue across multiple areas: staking rewards, growth and user acquisition, repurchases and burns, as well as R&D and operations. This new proposal would eliminate those allocations, directing all revenue to CRO repurchases and burns instead, with operations, infrastructure, and growth expenses covered by existing funds. Separately, Cronos Labs intends to use its strategic reserve to support future Cronos POS staking rewards. As CRO’s inflationary emissions gradually decline per prior plans, the reserve will be used to supplement staking rewards to maintain current Cronos POS reward parameters, with staking methods, lock-up periods, and reward structures unchanged. The proposal is currently in the discussion phase and will later be submitted for on-chain governance voting. The voting period is 14 days, with a quorum requirement of 33.4% of staked CRO; approval requires more than 50% of non-abstention votes.