dailyhodl.com
One decentralized exchange (DEX) platform is skyrocketing as its community shows overwhelming support for its proposed supply cut of tokens.
In a new proposal, over 97% of the community members of decentralized crypto exchange PancakeSwap (CAKE) voted to lower the digital asset’s token supply to a maximum cap of 450 million.
“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 total 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.”
According to the protocol, the supply cut will shift Pancake Swap away from being an inflationary model while still preserving its future growth.
“Total supply is an important metric when understanding the impact of token burns and future emissions. Lowering this number is a critical step to achieve ultrasound CAKE and enables us to send a clear signal of PancakeSwap’s pivot away from a hyperinflationary tokenomics model.
450 million CAKE is a reasonable new cap as it ensures sufficient supply for future growth (e.g., gaining market share on Ethereum, Ethereum L2s (layer-2s), and new initiatives like position managers).”
CAKE is trading for $3.76 at time of writing, an 8.81% gain during the last 24 hours and about a 70% raise since its price of $2.20 on December 21st.