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Decentralized crypto exchange, PancakeSwap, on Thursday plans to reduce the supply of its CAKE token by 300 million. This move was welcomed by most of its voting community.
The decentralized autonomous organization (DAO) controlling the governance of PancakeSwap floated a vote proposal to reduce the maximum supply of CAKE from 750 million to 450 million.
The voting period began in early European hours on Thursday and will last until 8:00 am UTC on Friday.
If the proposal is passed, the reduction will be implemented by January 4th, 2024.
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Over 99.95% of the community, representing 70,000 votes from CAKE holders, favored the proposal shortly after it went live.
In a recent message, a PancakeSwap team member said the reduction in CAKE puts the project “in a position to pursue further growth across all deployments.”
“With a current circulating supply of 388 million CAKE, the team believes this new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model,” Chef Mochi, head of PancakeSwap, said in a Telegram message.
CAKE token prices are up nearly 10% in the past 24 hours, with most of the movement taking place shortly after the proposal was floated, data from Coinstats shows.