Live Chat

Crypto News

Cryptocurrency News 10 months ago
ENTRESRUARPTDEFRZHHIIT

PancakeSwap Proposes to Cut CAKE Token Supply from 750M to 450M

Algoine News
Summary:
PancakeSwap, the decentralized exchange (DEX), is proposing to cut the maximum supply of its CAKE tokens from 750 million to 450 million. The 24-hour voting for the proposal, announced on December 28, will implement the cut by January 4, 2024, if approved. The CAKE token, which has demonstrated consistent deflation, is being primed for an accelerated transition to 'ultrasound' status. The move aligns with the current circulating supply of 388 million and moves away from a hyperinflationary model.
The team behind the decentralized exchange (DEX), PancakeSwap, is proposing a reduction in the total supply of its native token, CAKE, from 750 million to 450 million pieces. The prevailing market price for CAKE tokens stands at $3.58. As per the announcement made on December 28, the voting process for this proposal to cut down 300 million tokens is slated to run for 24 hours. Should the proposal gain approval, it will be implemented from January 4, 2024. Developers observe that the CAKE token has consistently shown deflation over several months, and this proposal is an effort to accelerate its path to becoming an ultrasound CAKE. The idea is to bring the total supply of the CAKE token in line with the current circulating supply of 388 million. With a net emission rate of 40 per block at its launch in September 2020, CAKE had an annual inflation rate around 80%, which has been consistently decreasing since then. CAKE tokens are offered as rewards for staking. A proposal approved on April 25 saw the emission of CAKE Syrup Pool declining from 6.65 CAKE per block to 3.0 CAKE per block, with a subsequent reduction of 0.5 CAKE per block each month for five months. This, along with a token burn mechanism, has resulted in a net deflationary nature for CAKE tokens. The PancakeSwap team stated that after almost three years, they now have better understanding of the incentives needed for realizing growth goals. The reduction in total supply is considered a vital move towards ultrasound CAKE and demonstrates PancakeSwap's shift from a hyperinflationary tokenomics model. Currently, PancakeSwap stands as one of the top-rated DEXs. As of press time, it boasted a total value locked (TVL) of $1.64 billion and is forecast to rake in $191 million in annualized protocol revenue.

Published At

12/28/2023 11:00:00 AM

Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.

Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal? We appreciate your report.

Report

Fill up form below please

๐Ÿš€ Algoine is in Public Beta! ๐ŸŒ We're working hard to perfect the platform, but please note that unforeseen glitches may arise during the testing stages. Your understanding and patience are appreciated. Explore at your own risk, and thank you for being part of our journey to redefine the Algo-Trading! ๐Ÿ’ก #AlgoineBetaLaunch