Posted: December 29, 2023 8:21 AM Updated: December 29, 2023 8:22 AM
Correction and fact check date: December 29, 2023, 8:21 AM
briefly
PancakeSwap has passed a proposal to reduce the CAKE token supply from 750 million to 450 million after a community vote.
Decentralized finance application PancakeSwap (CAKE) has passed a proposal to reduce the maximum supply of CAKE tokens from 750 million to 450 million. This reduction will officially take effect from January 4, 2024.
Implementing this adjustment has great benefits for a number of reasons, including providing the community with certainty about future CAKE token supply and accelerating the journey towards ultrasonic CAKE by reducing the total supply. This is a sign that PancakeSwap is transitioning away from a hyperinflationary tokenomics model while ensuring ample flexibility for growth through a reasonable new limit of 450 million cakes.
PancakeSwap argues that with the existing total supply of 388 million CAKE, the new, lower limit will be enough to capture market share across all chains and sustain the veCAKE model.
Prior to voting, PancakeSwap encouraged users to evaluate the potential impact of long-term and short-term changes in CAKE emissions on PancakeSwap token economics.
Recent changes to PancakeSwap
Over the past year, PancakeSwap has made significant revisions to its tokenomics, emissions and growth strategy, from strengthening CAKE tokenomics v2.5 to the recent introduction of the veCAKE gauge system, positioning CAKE for further growth across all distributions. .
Additionally, the price of PancakeSwap’s CAKE token has surged significantly recently, experiencing an impressive increase of over 100% in November, making it one of the best-performing products of Q4 2023.
Acting as an automated market maker, this platform distinguishes itself as one of the leading decentralized finance (DeFi) projects and is currently one of the best altcoins on the market.
PancakeSwap’s new proposal to reduce token supply is consistent with its strategic shift away from hyperinflationary token economics and solidifies the application’s position as a leading DeFi project in the dynamic cryptocurrency landscape.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles