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- The PanCakeSwap community has overwhelmingly supported a proposal to reduce the CAKE token’s maximum supply from 750 million to 450 million.
- The CAKE price has surged by 50% in the past week, reaching $3.69, with potential for a 58% increase toward the $5.5 peak.
The PanCakeSwap community has shown a strong and positive response to the proposal for a token supply cut on Thursday, December 28, 2023. The voting process, initiated by the PanCakeSwap team, aimed to reduce the token supply from 750 million to 450 million.
In a matter of hours, the proposal received overwhelming support, with over 97.88% of the 858,490.53 of votes expressing their approval. The updated maximum token supply figures for CAKE are expected to be officially reflected on major price-tracking platforms, such as CoinGecko and CoinMarketCap, by January 4.
Following the completion of the vote, CAKE was trading at $3.70 at 4:49 a.m. ET. While the token has experienced a slight 1% pullback in the past 24 hours, it has seen an impressive gain of over 49% in the past week.
PancakeSwap Achieving Consistent Deflation
Last week, PancakeSwap unveiled a proposal to decrease the supply of CAKE by 300,000,000 tokens, signaling a shift from a high-inflation emissions model to a more efficient flywheel, as stated on X. The reduction aims to move towards the goal of achieving “ultrasound CAKE” and to signify a departure from a highly inflationary model.
The PancakeSwap team highlighted that this strategic adjustment aligns with their vision for a robust, deflationary model, following consistent deflation in recent months. The total supply of the CAKE token will now have a maximum cap of 450 million CAKE.
Over the past year, PancakeSwap has undergone substantial changes in its tokenomics, emissions, and growth strategy. Additionally, plans are in motion to introduce a vote-escrowed model, enabling CAKE holders to stake their tokens for veCAKE, offering staking rewards and incentives. The proposal team said:
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 circulating 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.
The CAKE Price Prediction
In the past week, the PancakeSwap (CAKE) price has witnessed a remarkable 50% surge, currently trading at $3.69 with a market cap of $900 billion.
For over a year, the CAKE token experienced a consistent downtrend within a falling wedge pattern, where the converging trendline served as significant support and resistance, confining the downward movement.
However, buoyed by a bullish sentiment across the cryptocurrency market, CAKE hit its bottom at $1.05, initiating a robust recovery. Over the last ten weeks, the coin’s price soared by 258%, reaching a new yearly peak of $3.79.
During this bullish rally, the coin broke above the upper boundary of the wedge pattern, signaling an early indication of a trend reversal. In an ideal scenario, the CAKE price is expected to rally towards the wedge pattern’s highest point, currently at $5.5, indicating a potential increase of 58%.