Crypto.org is proposing new measures to rein in the inflation rate of CRO tokens. This burning mechanism will involve the construction of a Community Pool, where a certain portion of the CROs will be redirected on a regular basis for burning. As a result, inflation will reduce to about 2.1%, and the annual reward for stakers will decrease to 11.5%. This mechanism is also hoped to reduce long-term pressure and help improve CRO token economy with greater security.

This is a development that takes inspiration from leading blockchain systems like Ethereum, Cosmos Hub and Osmosis. Around 4.75 billion CROs are currently being staked, while a daily emission of 646 million tokens is being distributed to holders as staking rewards. After the adoption of this proposed burning mechanism, the inflation rate will reduce to the expected mark, and the staking rewards for holders will also be affected.

The Crypto.org team is encouraging its members to be actively involved in preserving and improving the CRO token economy. They should take the initiative to get in touch with the validators, and provide constructive feedback regarding the burning mechanism. All the necessary technical support will be provided to the members, so that they can carry out their token management in a more efficient way.

All in all, the burning mechanism will be beneficial for Crypto.org, as well as its CRO holders. It will lower the inflation rate and also offer better security to token holders. This is just the start of a series of planned developmental steps that will gradually shape the CRO token economy in the right way.



Other News from Today