Revenue-Backed CRO - Buys and Burns of CRO with 100% of Product Revenue

This is a signalling proposal. It contains no executable messages and changes no chain parameters. It records the community's decision on two commitments regarding how Cronos Labs product revenue and future staking yield are handled.

PART A - 100% of product revenue buys and burns CRO. All revenue from Ult ([Hidden link]) and Cronos Launch ([Hidden link]) buys CRO on the open market and burns it. Monthly, onchain, with every transaction hash published. Operations, infrastructure and any growth spending are funded from existing capital. Revenue reaches a single buy-and-burn contract, the contract converts the balance to CRO through an onchain swap with slippage protection at market price with no internal transfer and no preferential price, and the purchased CRO is sent to the burn address. Buybacks may occur more frequently than burns; burns are scheduled monthly. This supersedes the four-bucket revenue split envisaged in "A New Era for CRO" (discussion #1291), under which the burn was one bucket of four with no share or cadence specified. Under this proposal the burn is 100%, fixed, and the only destination.

PART B - Use of the Strategic Reserve to fund staking rewards going forward. The Strategic Reserve is committed to support staking rewards on Cronos POS. Staking rewards continue at current Cronos POS parameters, backfilled from the reserve as emissions decay. Nothing about how you stake or what you earn changes: reward rate, tier structures, lock periods and bonus rates are unchanged. Proposal #1291 set CRO emissions from staking rewards to decay and committed that a base staking rate is intended to be maintained throughout, so that stakers continue to earn a baseline yield for securing the network. Committing 100% of product revenue to buy back and burn means revenue is not available to fund staking yield, so the base staking and tier locking rate needs a funded source of its own. The two parts are proposed together because separating them would leave the second unfunded.

Implementation status: Phase 1, revenue collection and conversion across venues - product revenue can now be tracked. Phase 2, the buy-and-burn contract and the keeper - in development.

Voting: YES approves both (1) using 100% of revenue from Ult and Cronos Launch to buy CRO on the open market and burn it, monthly and onchain with every transaction hash published, and (2) use of the Strategic Reserve to fund future staking rewards on Cronos POS so that rewards continue at current Cronos POS parameters, backfilled from the reserve as emissions decay. NO disapproves of the proposal in its current form; if this proposal does not pass, Cronos Labs does not proceed with the revenue rule and the Strategic Reserve will not be allocated to fund staking rewards on Cronos POS - the vote is not a formality. NO WITH VETO vetoes the entire motivation and is strongly opposed to its implementation. ABSTAIN is impartial to the outcome. If the quorum is not met or more than 1/3 of the participating voting power has voted NoWithVeto, the proposal fails and is considered vetoed, in which case the proposal deposit is burned rather than being returned to respective depositors.

The voting period is 14 days. Quorum is 33.4% of bonded CRO, and more than 50% of non-abstain votes must be Yes. If you delegate and do not vote, your stake inherits your validator's vote, and voting directly overrides it.

Full proposal text, figures and rationale: [Hidden link]

Disclaimer: this proposal is provided for informational and governance-discussion purposes only. Nothing in it constitutes financial, investment, tax, or legal advice. It contains forward-looking statements based on current expectations and assumptions; actual outcomes may differ materially. Nothing in it constitutes a guarantee, commitment, or promise of future performance, results, or product availability.