PancakeSwap Burns 0.089% of CAKE Total Supply in November 2023
In November 2023, PancakeSwap announced that it had burned 0.089% of the CAKE total supply, resulting in a negative net. The team revealed that a total of 351,962 CAKE tokens were burned during the month, amounting to nearly $880,000 at current prices.
Continued Reduction in CAKE Total Supply
This latest burn marks the third consecutive month of CAKE total supply reduction, with a cumulative -712,667 CAKE net mint over September, October, and November 2023. Following the news, the price of CAKE surged by almost 7%, reaching $2.5 based on CoinGecko data.
PancakeSwap’s Deflationary Mechanisms
PancakeSwap implements deflationary mechanisms to ensure higher deflation than emission in its products. The platform aims for more CAKE to leave circulation than the amount produced. This approach has resulted in a net mint of -351,962 CAKE in November 2023.
Hard Cap and Token Emission
With the recent update, CAKE now has a hard cap of 750 million tokens. However, developers have expressed their intention not to frequently reduce token emission to encourage liquidity provision.
Hot Take: CAKE Price Surges as PancakeSwap Burns Tokens
PancakeSwap’s November burn report revealed a significant reduction in the CAKE total supply. As more tokens were burned than minted during the month, the price of CAKE experienced a notable increase. This demonstrates PancakeSwap’s commitment to implementing deflationary mechanisms to drive value and incentivize liquidity provision. With a hard cap of 750 million tokens now in place, PancakeSwap aims to strike a balance between reducing token emission and encouraging participation in its platform. The burn report highlights the platform’s ongoing efforts to create a sustainable and thriving ecosystem for CAKE holders.
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