The PancakeSwap community has approved the removal of 300 million tokens from supply.
PancakeSwap proposal to reduce the maximum supply of decentralized exchange natives 
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-5.33%
The token count went from 750 million to 450 million, with almost 98% voting in favor of the move.
On Thursday, the multichain decentralized exchange project posted a voting proposal to reduce CAKE’s maximum token supply. The voting period has ended, and the final results show that 97.88% are in favor of reducing the maximum supply from 750 million to 450 million.
The updated CAKE maximum token supply figures will be officially reflected on major price tracking platforms such as CoinGecko and CoinMarketCap by January 4th.
After voting closed, CAKE was trading at $3.70 at 4:49 a.m. ET. According to The Block’s CAKE price page, the token is down about 1% in the last 24 hours, but is up more than 44% in the past week.
Reasons for reducing CAKE supply
PancakeSwap stated that the reason for the supply change was to move towards its goal of achieving an “ultrasonic cake” and to signal the token’s departure from its highly inflationary model.
“After achieving consistent deflation in recent months, this latest strategic move to reduce the total supply of CAKE tokens by up to 450 million CAKE is consistent with PancakeSwap’s vision of a strong deflation model,” the PancakeSwap team said. said.
PancakeSwap last week presentation Proposal to reduce cake supply. “By reducing the token supply by 300,000,000 CAKE, we signal that PancakeSwap has successfully transitioned from a high-inflation emissions model to a much more efficient flywheel.” PancakeSwap wrote At X.
Over the past year, PancakeSwap has made significant improvements to its token economics, emissions, and growth strategy. Plans are in place to introduce a voting escrow model, allowing CAKE holders to stake their tokens for veCAKE, including staking rewards and incentives.
“Now that CAKE has achieved several months of sustained deflation and we are focused on accelerating the journey to ultrasonic CAKE, this proposal aims to reduce the total supply of CAKE tokens up to 450 million CAKE. The current circulating supply is 388 million CAKE. , Kitchen believes this new, lower limit will be sufficient to capture market share across all chains and sustain the veCAKE model,” the proposal added.
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