Crypto News – To reduce the maximum supply of its ecosystem token, CAKE, from 750 million to 450 million, the creators of PancakeSwap, a decentralized exchange (DEX), are aiming to do so.
PancakeSwap Vote: 300 Million Token Supply to be Revamped if Vote Passes
A Dec. 28 release states that there will be a 24-hour voting period on the 300 million token decrease plan. The proposal’s effective date is January 4, 2024, if it is passed. The revised plan, according to the developers, will better match CAKE‘s circulating supply of 388 million, they stated.
Now that CAKE has achieved consistent deflation for several months and is focusing on accelerating the journey to ultrasound CAKE, the proposal aims to reduce the CAKE token’s total supply,
Developers
Proposal to Reduce CAKE Syrup Pool Emissions Adopted on April 25
When CAKE first started operating in September 2020, its net emission rate was 40 per block, which equated to an annual inflation rate of over 80%. Since then, the program has been declining.
A proposal to reduce CAKE Syrup Pool emissions from 6.65 CAKE per block to 3.0 CAKE per block was adopted by token holders on April 25. Since then, CAKE tokens have been net deflationary when paired with a token burn mechanism.
After nearly three years in development, the team now has more accurate estimations of incentives required to achieve growth targets. Lowering the total supply is a critical step to achieve ultrasound CAKE and to send a clear signal of PancakeSwap’s pivot away from a hyperinflationary tokenomics model.
PancakeSwap developers
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