The Pancakeswap community on Thursday voted to remove 300 million tokens from the maximum supply. This is in response to a proposal to remove the tokens and leave only 450 million tokens.
The project posted a vote proposal asking for community members to vote, and the result shows a 97.88% majority in favor of reducing the maximum supply from 750 million to 450 million. The official maximum supply will be reflected on major price-tracking platforms, like CoinGecko and CoinMarketCap, by January 4, the project said.
Pancakeswap (CAKE) was initially created as an inflationary cryptocurrency with no supply cap. This means that more CAKE tokens would continue to be released into supply as long as there’s need.
PancakeSwap stated that the reason for the change in supply was to advance toward the goal of achieving “ultrasound CAKE” and to signal the token’s shift away from a highly inflationary model.
“After achieving consistent deflation in recent months, this latest strategic move to reduce the CAKE token’s total supply to a maximum cap of 450 million CAKE aligns with PancakeSwap’s vision for a robust, deflationary model,” the PancakeSwap team said.
Pancakeswap announced the proposal to reduce the supply of tokens by 300 million last week.
“By reducing our token supply by 300,000,000 CAKE, we signal PancakeSwap’s successful pivot from a high-inflation emissions model, to a much more efficient flywheel,” PancakeSwap wrote on Twitter last week.
Making CAKE More Valuable
Pancakeswap has come a long way since its launch in 2020. Since then, the project has revamped its tokenomics emissions and growth strategy. Reducing the supply of the CAKE token is one strategy to reduce the supply and make each CAKE more valuable.
It is similar to the burn mechanism that many projects adopt to reduce the supply of their tokens and in turn make them more valuable. The only difference is that this is a one-off event.
The project also plans to introduce a vote-escrowed model, allowing CAKE holders to stake their tokens for veCAKE, which includes staking rewards and incentives.
“Now that CAKE has achieved consistent deflation for several months and is focusing on accelerating our journey to ultrasound CAKE, this proposal aims to reduce the CAKE token’s total supply to a maximum cap of 450 million CAKE. With a current circulating supply of 388 million CAKE, the Kitchen believes this new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model,” the proposal added.
This proposal will definitely attract more users to Pancakeswap who seek to earn rewards from staking and enjoy the other incentives.
About Pancakeswap
Pancakeswap is a decentralized exchange launched by Binance in 2020. Since then, it has evolved to include many other services including stalin, yield farming, and many other interest yielding activities.
CAKE is the native token of the DEX, and holders can now stake it to earn rewards. Cake is also the token used to pay for transaction fees on the platform. The platform also supports non-fungible tokens (NFTs) now, giving users more options to work with.
Pancakeswap runs on Binance Smart Chain (BSC), so it is a big rival against Ethereum based DEXs like Uniswap in terms of transaction fees which are much lower on Pancakeswap.
The post Pancakeswap Community Votes to Remove 300 Million Tokens From Supply first appeared on CryptocyNews.com.
from CryptocyNews.com https://www.cryptocynews.com/pancakeswap-community-votes-to-remove-300-million-tokens-from-supply/
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