The creators of the decentralized exchange (DEX) PancakeSwap have initiated a poll to decrease the tokens within their CAKE ecosystem.
On December 28, the developers of PancakeSwap introduced a vote known as the proposal to diminish the overall supply of CAKE tokens. The proposal entails reducing the CAKE token supply from 750 million to 450 million. The voting period will extend for 24 hours, and if ratified, the proposal is slated to be implemented on January 4, 2024.
“With CAKE successfully maintaining a consistent deflationary trend over the past several months and our focus on expediting our progression towards ultrasound CAKE, this proposal seeks to limit the total supply of CAKE tokens to a maximum cap of 450 million CAKE,” stated the announcement.
In response to the initiation of the proposal, the price of CAKE exhibited a 6.5% surge. Based on CoinMarketCap data, the token has observed a price increase of $3.74 within the last 24 hours, leading to a rise in the token’s market capitalization to $999.4 billion.
PancakeSwap’s Head Chef Mochi emphasized that with the current turnover of 388 million CAKE, the team is confident that the proposed lower capitalization will be sufficient to acquire market share across all networks and sustain the veCAKE (vote-escrowed) model.
The veCAKE model has been devised to provide CAKE holders with enhanced governance authority, elevate liquidity levels across our pools, and significantly enhance rewards for stakeholders holding CAKE.
