INITIAL PROPOSAL: Cronos POS V5 Upgrade to Onboard Billions and Invest in the U.S.

Abstract

Aligned with the vision of the Cronos and Crypto.com 2025 Roadmap, this proposal outlines strategic updates for the Cronos POS V5 upgrade. The focus is on enhancing institutional adoption of $CRO, fostering AI development, and supporting U.S.-centric crypto initiatives. Key changes include token reallocation and network parameter adjustments to ensure sustainable growth.

Key Updates

1. New Token Allocation

To advance institutional adoption and ecosystem growth, 70 Billion $CRO will be allocated to the Cronos Strategic Reserve escrow wallet. This rebalances the total supply to 100 Billion and supports:

• U.S. crypto ecosystem development
• Seeding the $CRO ETF
• AI-powered projects and grants

Lockup & Vesting:

• 5-year linear vesting (~1.167B $CRO/month).
• Funds are non-delegatable during the lockup.

👉 Explore Cronos’ roadmap

2. Network Parameter Adjustments

To maintain 8% staking APR post-upgrade, inflation parameters will be updated:

• inflation_max: 3.7% → 1%
• inflation_min: 1.2% → 0.85%

Impact: Competitive staking rewards while ensuring long-term sustainability.

Technical Implementation

A. Token Allocation Mechanism

• Vesting Account: PeriodicVestingAccount via Cosmos SDK.
• Vesting Schedule: Monthly releases over 5 years.

Example:

{
  "@type": "/cosmos.vesting.v1beta1.PeriodicVestingAccount",
  "vesting_periods": [
    {
      "amount": "116666666666666666",
      "length": "2628000"
    }
  ]
}

B. Parameter Updates

"changes": [
  {
    "subspace": "mint",
    "key": "InflationMax",
    "value": "\"0.01\""
  }
]

Testing & Next Steps

• Testnet: Croeseid (testnet-croeseid-4) will validate changes.

• Governance Vote:

  • YES: Support V5 upgrade.
  • NO: Request revisions.
  • VETO: Reject proposal entirely.

👉 Learn about Cronos’ ecosystem

FAQs

Q1: Why increase $CRO supply to 100B?
A: To fund strategic initiatives (ETF, AI) while maintaining vesting controls.

Q2: How does 8% APR persist post-upgrade?
A: Adjusted inflation parameters balance emissions with staked supply.

Q3: What’s the vesting schedule?
A: Linear monthly unlocks over 5 years (~1.167B $CRO/month).

Conclusion

The Cronos POS V5 upgrade positions $CRO for institutional adoption, AI innovation, and U.S. market growth. By combining targeted incentives with technical refinements, this proposal lays the groundwork for Cronos’ next evolution.

Voting Deadline: TBD.
Upgrade Height: To be announced.