Home news PancakeSwap Tokenomics Revamp: Proposal to Slash Max CAKE Supply by 40%

PancakeSwap Tokenomics Revamp: Proposal to Slash Max CAKE Supply by 40%

by Harsh Notariya

The high token drastically plummeted the price of CAKE amidst the . Hence, the PancakeSwap pivoted its native token – CAKE, towards a deflationary model earlier this year. 

PancakeSwap Community Overwhelmingly Votes to Cut Maximum Supply

On Thursday, PancakeSwap proposed to reduce the maximum supply of CAKE tokens by over 40%. If the community supports the proposal, the new maximum supply of CAKE will be reduced to 450 million. The proposal explains:

“With a current total supply of 388M CAKE, the Kitchen believes this new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model.”

So far, over 354,000 users have voted in support of the proposal. The process will end on Friday at 8:00 AM UTC.

PancakeSwap Maximum Supply Proposal Current Results. Source: Official Website
PancakeSwap Maximum Supply Proposal Current Results. Source: Official Website

High Token Inflation

CAKE token inflation was one of the main pain points of the community. Hence, the team conducted major developments in 2023.

It announced a V3 upgrade in April 2023 and significantly reduced the creation of new CAKE tokens. The team planned a 45% yield reduction on the chain and a 32% reduction on the chain.

Not to mention, PancakeSwap also received criticism for upgrading to V3 by forking the code of 's V3. The community was concerned that frequent forking would make all the Finance () apps look the same.

As of writing, CAKE is at $3.84, up by over 6% in the past 24 hours.

CAKE Price. Source: BeInCrypto
CAKE Price. Source: BeInCrypto

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