At the time of writing, according to the cryptocurrency data index Coinmarketcap, the 23rd largest cryptocurrency exchange by market volume Crypto.com has announced it is to burn 70 Billion of its native cryptocurrency “CRO” tokens.
First of all, let me explain what is “Token Burn”. Token Burn is referred to as destroying tokens of the token supply by sending them to an address named “eater address”. It is like sending something to a black hole.
However, Crypto.com announced this news by a blog post mentioning they burning CRO tokens as it prepares for a fully decentralized mainnet blockchain launch in March. According to the blog post, Crypto.com believes that the whole world needs a fully decentralized, open-sourced, public blockchain with better transaction speed along with lower fees.
As for the first step of “Fully Decentralized” they decided to burn CRO tokens by following a schedule. In total, 70 Billion CRO will be burned. According to the announcement, 59.6 billion tokens burned on February 22, 2021. 10.4 billion is currently locked in a smart contract and those will also be burned monthly as it gets unlocked.
Crypto.com had mentioned this will increase the circulating supply of CRO from the current value to over 80%. And 5 billion CRO will be allocated to blockchain validators. They further mentioned 0.9 billion CRO allocate to Particle B for blockchain ecosystem development.
Also Crypto.com has noted in a separate blog post, that they will launch fully decentralized, open-sourced public blockchain on March 25, 2021 as Crypto.org chain.