PancakeSwap Proposal to Cut CAKE Supply Gets a 98% Vote
PancakeSwap plans to cut CAKE supply to 450M, with 98% voter support, aiming for higher value and better market performance.
PancakeSwap's team has proposed to reduce its CAKE token supply from 750 million to 450 million. They requested that the project’s community vote on the decision, and unsurprisingly, the proposal has gained overwhelming support with 98% voting in favor. This significant move, aimed at shifting away from a high-inflation model, is part of the platform's larger strategy to establish a more efficient and deflationary token system.
The decision to cut the token supply aligns with PancakeSwap's goal of achieving 'ultrasound CAKE', which means they want to create a token that increases in value as supply drops. The new maximum supply of 450 million CAKE will soon be updated on major price-tracking sites like Coinpaprika.
After the vote, the value of CAKE stood at $3.70, indicating a strong market performance with a notable weekly gain, despite a slight recent decrease. The change is part of PancakeSwap's broader strategy to modify its tokenomics and introduce a vote-escrowed model for staking CAKE, enhancing rewards and incentives for holders. This move aims to increase market share and sustain the newly proposed veCAKE model, reflecting a significant shift in the platform's operational dynamics.
