Markets News Report
December 29, 2023

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.

PancakeSwap Passed Proposal to Reduce Maximum CAKE Token Supply

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.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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