Near-Unanimous Vote Reduces CAKE Token Supply
The Pancakeswap community recently held a governance vote to decrease the total supply of CAKE tokens by 300 million. The voting period lasted from December 21 to December 29, 2023, and the outcome showed overwhelming support for the supply reduction, with 97.88% of the community in favor of the proposal. As a result, the total supply of CAKE tokens will be reduced from 750 million to 450 million. The proposal stated that this new lower cap would be sufficient for Pancakeswap to gain market share and sustain the VECAKE model, given its current circulating supply of 388 million CAKE tokens.
Price Impact and Market Capitalization
Following the governance vote, the price of CAKE tokens experienced a significant surge against the US dollar, with a 42.6% increase over the previous week and a 62% increase for the month. However, there was a slight dip of approximately 2.4% in the past day. Currently, CAKE has a market capitalization of $872 million, representing 0.05% of the total crypto economy valued at $1.75 trillion.
Pancakeswap’s Position in the Market
Pancakeswap currently ranks as the third-largest decentralized exchange (dex) globally in terms of trading volume, with $1.66 billion in total value locked (TVL) within the protocol. Over the past month, the platform has seen a 16.81% increase in TVL. Despite the recent surge in CAKE token price, it is still trading 91.80% below its all-time high of $43.96 per coin, which was reached on April 30, 2021. As of now, CAKE’s 24-hour trading range fluctuates between $3.49 and $3.83 per unit.
Hot Take: Pancakeswap Community Votes to Lower CAKE Token Supply
The Pancakeswap community has made a decisive move by sanctioning a governance vote to reduce the supply of CAKE tokens. With an overwhelming 97.88% of the community supporting the proposal, the total supply will be decreased from 750 million to 450 million tokens. This reduction aims to sustain the VECAKE model and help Pancakeswap gain more market share across all chains. The price of CAKE tokens has seen significant fluctuations, with a recent surge but also a slight dip. However, Pancakeswap remains one of the leading decentralized exchanges globally, boasting a high TVL and occupying a significant position in the market.
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