A Proposal to Reduce CAKE Token Supply Receives Overwhelming Support
A recent proposal by PancakeSwap to reduce the maximum supply of its native CAKE token from 750 million to 450 million has been approved with nearly 98% of votes in favor. The multi-chain decentralized exchange project posted the vote proposal, and after the voting period concluded, it was revealed that 97.88% of participants supported the reduction.
Updated Maximum Token Supply Figures Expected
The updated maximum token supply figures for CAKE are expected to be officially reflected on major price-tracking platforms, like CoinGecko and CoinMarketCap, by January 4.
Rationale for Cutting the Supply of CAKE
PancakeSwap stated that the reason for reducing the token supply was to move towards achieving “ultrasound CAKE” and to signal a shift away from a highly inflationary model. The team explained that this strategic move aligns with their vision for a robust, deflationary model.
PancakeSwap’s Tokenomics and Growth Strategy
PancakeSwap has been revamping its tokenomics, emissions, and growth strategy over the past year. They plan to introduce a vote-escrowed model that allows CAKE holders to stake their tokens for veCAKE, which includes staking rewards and incentives. The proposal aims to sustain the veCAKE model and gain market share across all chains with a lower maximum cap of 450 million CAKE.
Hot Take: PancakeSwap’s Strategic Move Towards Deflationary Model Gains Support
PancakeSwap’s proposal to reduce the maximum supply of CAKE tokens has received overwhelming support from the community. This move is part of their strategy to achieve “ultrasound CAKE” and transition away from a highly inflationary model. By reducing the token supply, PancakeSwap aims to create a more robust and deflationary ecosystem. With plans to introduce a vote-escrowed model and sustain the veCAKE model, PancakeSwap is positioning itself for growth and market dominance across various chains.
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