Crypto.com increases staking rewards! Benefits premium card users, CRO temporarily stops declining

The cryptocurrency debit card company Crypto.com recently announced a restructuring of the CRO card rewards program, reducing the card rewards to 0 for the blue card and lowering the rewards for other card tiers. This drastic news immediately caused its token to plummet by over 15%, prompting the official announcement today of modifications to its staking rewards as compensation for users.

Adjustment to Staking Rewards

The community has been really vocal with regards to the changes to the card program announced yesterday. We care deeply about the community, we hear you & always listen to you.

As a result, we're revising card staking rates. 🧵

— Kris | Crypto.com (@kris) May 3, 2022

Crypto.com CEO Kris announced today on Twitter that, in response to strong community feedback, they have decided to make adjustments. However, this modification does not involve reverting the card cashback rates to their original values, but rather taking a more "balanced" approach.

The adjustment plan announced by Kris today changes the "staking rates" for Obsidian, Icy White, and Frosted Rose Gold cards to 8%, and for Royal Indigo and Jade Green cards to 4%. Originally, the staking rewards for these card tiers were expected to be reduced to 0%.

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This adjustment shows the official concession. While they aim to cut costs to maintain the CRO token economy, overly aggressive measures led to a significant price drop. By increasing the staking rates for higher-tier cards, it is evident that the company hopes users will buy more CRO tokens to enhance card rewards and alleviate current selling pressure in the market.

After the news was released, the CRO price temporarily halted its decline, but whether this plan can attract users to buy and lock CRO tokens in the long term remains to be seen.