A PancakeSwap proposal to reduce the maximum supply of the decentralized exchange CAKE
-6.75%
token from 750 million to 450 million has been completed with almost 98% of votes in favor of the move.
On Thursday, the multi-chain decentralized exchange project posted a vote proposal to reduce CAKE’s maximum token supply. The voting period has ended and the final results show that a majority of 97.88% is in favor of reducing the maximum supply from 750 million to 450 million.
The updated maximum token supply figures for CAKE are expected to be officially displayed on major price tracking platforms, such as CoinGecko and CoinMarketCap, by January 4.
After voting ended, CAKE traded at $3.70 at 4:49 a.m. ET. The token has retreated about 1% over the past 24 hours, but is up more than 44% over the past week, according to The Block’s Price Page for CAKE.
Reason for reducing the supply of CAKE
PancakeSwap stated that the reason for the change in offering was to make progress towards the goal of achieving “ultrasound CAKE” and to signal the token’s shift from a highly inflationary model.
“After achieving consistent deflation in recent months, this latest strategic move to reduce the total supply of the CAKE token to a maximum of 450 million CAKE aligns with PancakeSwap’s vision for a robust, deflationary model,” according to the PancakeSwap team.
Last week Pancake Exchange announced the proposal to limit the supply of CAKE. “By reducing our token supply by 300,000,000 CAKE, we signal PancakeSwap’s successful transition from a high-inflation emissions model to a much more efficient flywheel,” says PancakeSwap. wrote on X.
Over the past year, PancakeSwap has significantly revamped its tokenomics, issuance and growth strategy. There are plans to introduce a voting escrowed model, allowing CAKE holders to stake their tokens for veCAKE, including staking rewards and incentives.
“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 circulating supply of 388 million CAKE De Kitchen believes that this new and lower limit will be sufficient to increase market share across all chains and sustain the veCAKE model,” the proposal said.
