PancakeSwap DAO sees 70% of the CAKE holder community favor reduction of inflation, what to expect
- PancakeSwap DAO has noted 70% of the CAKE holder community voting in favor of controlling inflation and reducing block rewards.
- The proposal is intended to benefit long-term CAKE stakers with a sustainable inflation rate for the token.
- CAKE price has nosedived 5.3% overnight, as holders wait and watch the results of the proposal.
PancakeSwap DAO community members are voting on a proposal to “aggressively reduce inflation” in the token. As of press time, nearly 70% of votes are in favor of the move since it supports long-term CAKE stakers.
CAKE emissions on PancakeSwap’s main liquidity pool would drop by 94% once the proposal is voted in.
Also read: Top 3 cryptos with most active developers: Cardano, Polkadot and Kusama
PancakeSwap DAO community in favor of aggressive reduction in CAKE inflation
The team behind PancakeSwap carefully considered the dialogue surrounding the unsustainable inflation rate of CAKE that required the token to see higher adoption and capital inflow for stakers to earn higher yields. A proposal to aggressively reduce inflation and transform CAKE’s tokenomics to generate higher real yield and favor long-term CAKE stakers was put forward.
At press time, 70.17% of voters were in favor of the proposal, 10.26% agreed to a gradual and not aggressive reduction in inflation and 19.57% rejected both models.
PancakeSwap DAO vote
The proposal states that greater than 50% support for Option 1 or 2 would result in a reduction in CAKE inflation and the benefits associated with CAKE staking would continue for community members.
The response to the PancakeSwap DAO proposal is overwhelmingly positive and the development is likely to act as a bullish catalyst for CAKE price, fueling bullish sentiments among holders. Voting on the proposal ends on April 28, Friday.
What to expect from CAKE price
CAKE recently broke out of its short-term uptrend that started in July 2022 after a definitive close below the trendline as seen in the chart below.
Experts believe CAKE price is close to its buy zone, and technical analyst BlockchainSanta set a buy order for the token at $2.5. The expert recommends scooping up the DeFi token and opening long positions on CAKE, as the token is expected to recover from the recent decline and target closest resistance at $3.2.
CAKE/USDT 1D price chart
The expert is scooping up more CAKE at $2.57, until $2.5, awaiting a recovery in the asset’s price. A decline below support at $2.5 could invalidate the bullish thesis for the DeFi token and make further correction likely.
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.
