Crypto.com, the Hong Kong-based payments and crypto exchange platform, will conduct one of the biggest token burns ever ahead of its mainnet launch.
Crypto.com’s DeFi move
Crypto exchange and payments tool provider Crypto.com will burn over 70 billion CRO in the coming weeks as it approaches its mainnet launch, it said in a blog post today.
Touted as the “largest token burn” in history, Crypto.com said the move was an “important step” to fully decentralize the network at the mainnet launch—the token currently works on the Ethereum network current; it would now transition to the Crypto.org Chain.
A “token burn” is said to happen if a predetermined amount of a certain cryptocurrency is taken out of circulation permanently. This could take place for various reasons, such as increasing shareholder value and increasing the “health” of the network.
Crypto.com said its fully decentralized, open-source, public chain with high speed and low fees would benefit from the token burn while fully decentralizing its network. “Use cases driving mass crypto adoption through payments, DeFi, and NFTs all need this critically important infrastructure,” the team added in a post.
The schedule of the 70 billion CRO is as follows:
- 59.6 billion have already been burned on February 22, 2021.
- 10.4 billion is currently locked in a smart contract and will be burned monthly, as it gets unlocked.
- This will increase the circulating supply of CRO from the current 24% to over 80%.
Of the 5.9 billion CRO, 5 billion CRO will be allocated to mainnet block rewards for Chain validators and delegators which helps secure the network while 0.9 billion CRO would be allocated to Particle B for the Chain’s ecosystem development.
Mainnet launch date
Apart from the CRO burn, Crypto.com also confirmed the date for the launch of its upcoming mainnet today. “It’s official: #Mainnet Launching on 25 March 2021,” the firm said in a post.
The firm claimed that over 3,000 validator applications from all around the world were received during the Crossfire Mainnet Dry-Run where more than 275 million transactions were processed in four weeks. It added that the network took over two years of testing and building.
Meanwhile, CRO jumped over 57% to $0.22 on news of the token burn and upcoming mainnet launch. It was one of the only cryptocurrencies to remain green today as the broader market saw a sudden drop this morning.