PancakeSwap wants to cut the supply of CAKE tokens.
Key Takeaways
- PancakeSwap is proposing to reduce the CAKE token supply from 750 million to 450 million.
- This proposal aims to strengthen the deflationary dynamics by matching the total supply of CAKE with the current circulating supply.
- PancakeSwap is looking to transition away from a hyperinflation model and toward ultrasonic CAKE and clearer growth goals.
Pancake Swapa leading decentralized exchange, is disrupting token economics with a bold move. Reduce CAKE token supply.
The exchange is trying to reduce the ecosystem token CAKE. The number of tokens will increase from 750 million to 450 million, worth $1.074 billion..
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
With CAKE token Currently trading at $3.58The proposal for this 300 million token reduction will be made public during a 24-hour voting period. Aimed for implementation on January 4, 2024.
The development team says: CAKE’s continued deflation and the pursuit of ultrasonic CAKE The main motivations for this decline are: This adjustment brings the total supply of tokens more closely into line with the current circulating supply of 388 million tokens.
First introduced as Net in September 2020 Emission rate of 40 per blockCAKE’s token economics, leading to an inflation rate of 80% per year, have since evolved.
On April 25th, token holders approved changes to the CAKE syrup pool emissions. Reduced from 6.65 CAKE per block to 3.0 CAKE per block., saving an additional 0.5 CAKE per block per month for 5 months. With token burning, CAKE tokens are deflation model.
The PancakeSwap development team acknowledges the importance of this reduction and that it Critical Steps to Achieve Ultrasonic Cake This marks a clear shift away from the hyperinflationary token economics model. Here’s what they say:
After nearly three years of development, the team now has a more accurate estimate of the incentives needed to achieve its growth goals.
PancakeSwap, one of the most popular DEXs, currently boasts a total fixed value of $1.64 billion and is expected to generate $191 million in annual protocol revenue.
Ain is a senior cryptocurrency researcher. Her vast experience with content related to cryptocurrency and blockchain technology allows her to identify key information that should be presented to learners and ensure the validity of the data collected.
With a degree in New Media Studies, she has developed an extensive repertoire of skills to educate people through new, research-proven research models based on reasoning and human long-term memory.
Ain approaches everything with great care. Her main goal is to remove the ambiguity surrounding many Web3 concepts and guide content writers in presenting difficult cryptography-related concepts in an easy-to-understand manner.
Although content strategy is her main passion, Ain also enjoys reading fantasy books and watching superhero movies.
