PancakeSwap Passed Proposal to Reduce Maximum CAKE Token Supply
In Brief
PancakeSwap has passed a proposal after community vote, suggesting reduction in supply of CAKE tokens from 750 million to 450 million.
Decentralized finance application PancakeSwap (CAKE) has passed a proposal suggesting reduction in the maximum supply of CAKE tokens from 750 million to 450 million. The reduction is scheduled to officially take effect on January 4, 2024.
Implementing this adjustment holds strong merit for several reasons, including providing community certainty on future CAKE token supply and expediting the journey towards ultrasound CAKE by lowering the total supply. That signals PancakeSwap’s shift from a hyperinflationary tokenomics model, while also ensuring sufficient flexibility for growth with a reasonable new cap of 450M CAKE.
PancakeSwap contends that, with the existing total supply of 388 million CAKE, the new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model.
Before voting, PancakeSwap encouraged users to assess the potential effects of both long and short-term changes in CAKE emissions on PancakeSwap tokenomics.
PancakeSwap’s Recent Transformation
Over the past year, PancakeSwap has undergone substantial revisions to its tokenomics, emissions and growth strategy, from enhancing CAKE Tokenomics v2.5 to the recent introduction of the veCAKE Gauges System, positioning CAKE for furher growth across all deployments.
Moreover, in recent times PancakeSwap’s CAKE token price has surged significantly, experiencing a remarkable increase of over 100% in November, making it one of the top performers in Q4 2023.
The platform, functioning as an automated market maker, distinguishes itself as one of the leading decentralised finance (DeFi) projects and ranks among the top altcoins in the current market.
PancakeSwap’s new proposal of reduction in token supply aligns with its strategic shift away from hyperinflationary tokenomics, solidifying application’s position as a leading DeFi project in the dynamic cryptocurrency landscape.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
