PancakeSwap community votes to remove 300 million CAKE from supply
- PancakeSwap community’s voters are 98% in favor of a proposal to remove 300 million CAKE from the asset’s supply.
- CAKE token’s total supply will be reduced to a maximum cap of 450 million according to the proposal.
- CAKE price rallied nearly 6% in response to the proposal’s approval.
PancakeSwap revamped its tokenomics and the DEX’s strategy. The proposal to remove 300 million CAKE from total supply is a key step in helping the DEX token gain market share across all chains.
CAKE price rallied nearly 6% as 98% of voters support the proposal.
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CAKE focuses on deflation, community agrees to pull 300 million tokens
Nearly 98% of votes on a proposal to reduce CAKE token’s total supply supported the protocol’s plan to introduce a maximum cap of 450 million. The current total supply of cake is 388 million, the new lower cap is likely to help the project gain market share across all chains.
The proposal calls for a journey to “ultrasound” CAKE, focused on achieving consistent deflation in the token.
PancakeSwap journey to “ultrasound” CAKE
The CAKE community has battled token inflation since its inception in 2021 and three years post the DEX asset’s development, the team is now focused on reducing total supply and pivoting away from hyperinflation. The project’s team believes that 450 million is a reasonable new cap for CAKE supply as it ensures a sufficient supply for future growth and for the token to stay deflationary long-term.
CAKE price rallied nearly 6% following the proposal’s approval. At the time of writing, the DEX token is trading at $3.596, up 41% in the past week.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
