In a bid to sustain its development roadmap, decentralized cryptocurrency exchange PancakeSwap is planning to reduce the total supply of its native token, CAKE. This proposal was announced on the community forum, highlighting the progress made so far and the importance of improving tokenomics to take the platform to the next level.
The Proposal
The new proposal suggests a reduction in the total supply of CAKE from 750 million tokens to 450 million tokens. Currently, there is a circulating supply of 388 million CAKE. Supporters of the proposal believe that a lower cap will enable PancakeSwap to gain a significant market share across networks. However, it is crucial for members of the community to discuss and consider the proposal before voting takes place.
Significant Progress and Reasons for Development
PancakeSwap has made significant progress, as evident from the CAKE tokenomics v2.5 and the introduction of the veCAKE system, which promises to enhance emissions and implement a growth strategy. The team behind PancakeSwap has provided several reasons for the proposed development:
- Providing certainty for the community regarding the platform’s token supply.
- Boosting the development roadmap to achieve further growth.
- Introducing ultrasound CAKE to ensure flexibility for expansion.
By reducing the token supply by 300 million, the community will have more accurate projections of incentives aimed at driving growth. It is expected that the platform will continue to experience gains as it moves forward in 2021.
PancakeSwap believes that a total supply of 450 million CAKE is essential for stimulating new growth and gaining market share in both the Ethereum and Ethereum layer 2 networks. The markets have responded positively to this proposal, with the asset price experiencing gains in the past 24 hours. The value of the asset surged by 18% to reach $2.60, although there was a slight correction, bringing the token’s price to $2.50 at the time of writing. Trading volumes on the platform have also spiked by 175% over the past 24 hours.
PancakeSwap has consistently emphasized community engagement, as exemplified by its roadmap and recent activities. The community’s airdrop is currently live, providing users with $500 and governance tokens to improve internal platform management.
