One decentralized exchange platform (DEX) is skyrocketing as the community shows overwhelming support for the proposed token supply reduction.
In a new proposalMore than 97% of community members of decentralized crypto exchange PancakeSwap (CAKE) voted to reduce the digital asset’s token supply to a maximum of 450 million.
“With CAKE having achieved consistent deflation for several months and focusing on accelerating our journey towards ultrasound CAKE, this proposal aims to reduce the total supply of the CAKE token to a maximum of 450 million CAKE.
With a current total supply of 388 million CAKEs, The Kitchen believes this new and lower limit will be sufficient to increase market share across all chains and sustain the veCAKE model.”
According to the protocol, the supply reduction will ensure that Pancake Swap is no longer an inflationary model, while maintaining future growth.
“Total supply is an important metric in understanding the impact of token burning and future emissions. Lowering this number is a critical step to achieving ultrasonic CAKE and allows us to send a clear signal of PancakeSwap’s pivot away from a hyperinflationary tokenomics model.
450 million CAKE is a reasonable new limit as it guarantees enough supply for future growth (e.g. gaining market share on Ethereum, Ethereum L2s (layer-2s) and new initiatives such as position managers).
CAKE is trading at $3.76 at the time of writing, a gain of 8.81% over the past 24 hours and an increase of around 70% since its price of $2.20 on December 21.
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Featured image: Shutterstock/Lyudmyla Ishchenko/S-Design1689/Sensvector