PanCakeSwap Announces Proposal to Reduce CAKE Total Supply
PanCakeSwap (CAKE), a cryptocurrency built on the Binance Smart Chain, has experienced a significant decline in value over the past year. To address this concern, PanCakeSwap has put forth a proposal to reduce the total supply of CAKE from 750 million to 450 million. The goal is to increase the price of CAKE and pave the way for an “ultrasound CAKE.”
The Benefits of Restricting CAKE Total Supply
The current circulating supply of CAKE is approximately 388 million. By restricting it to 450 million, only 62 million new coins will be added in the future. This move has garnered support from the CAKE community, as they believe it can help the cryptocurrency recover from its significant value loss since reaching an all-time high of $43.96 in April 2021. With a constant decline over the past two years, CAKE is currently trading at over $2.50, making a reduction in its total token supply potentially beneficial.
Reevaluating Incentives for Ecosystem Growth
PanCakeSwap has also announced that it is reevaluating incentives for ecosystem growth after nearly three years of development. This reassessment aligns with the belief that the reduced token supply will better serve the community.
Transitioning to Ultrasound CAKE
Lowering the total token supply is a crucial step towards achieving ultrasound CAKE. This transition signifies PancakeSwap’s aim to move away from a hyperinflationary tokenomics model. The revised total supply of 450 million coins is deemed reasonable enough to allow for growth and development while maintaining flexibility.
PanCakeSwap Price Rally
Following the announcement, the price of PanCakeSwap has rallied by approximately 20% in the past 24 hours. On Thursday, December 21, the price reached $2.61, marking a 19.09% increase. The 24-hour trade volume also experienced a significant surge of 179.65%, totaling $197.29 million. The market cap of CAKE rose to $683.84 million, reflecting an 18.33% gain in value. Despite a recent decline of 1.90% over the past month, PanCakeSwap managed to achieve a 3.66% increase in the last seven days.
Hot Take: PanCakeSwap Takes Steps to Revive CAKE’s Value
PanCakeSwap’s proposal to reduce the total supply of CAKE demonstrates its commitment to revive the cryptocurrency’s value and support its community. By limiting the number of new coins added in the future, PanCakeSwap aims to increase the price and transition towards ultrasound CAKE. This announcement has already led to a notable price rally, indicating positive market sentiment towards PanCakeSwap’s efforts. With ongoing evaluations of incentives for ecosystem growth, PanCakeSwap is taking strategic steps to ensure the long-term success and development of CAKE.
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