This decision has been made in order to strengthen the deflationary growth model and enhance the value of the PancakeSwap token.
“By reducing the CAKE supply, we are signaling to the PancakeSwap community that we are moving away from the hyperinflationary tokenomics model. This measure will boost the community’s confidence in the ecosystem’s future, expedite the transition towards a deflationary model, and create the necessary foundation for future asset growth,” assures the PancakeSwap team.
Currently, there are approximately 388 million CAKE tokens in circulation, out of a total supply of 750 million. The proposed lower limit of 450 million CAKE tokens is believed to be sufficient for gaining significant market share across different blockchain networks, while still maintaining the veCAKE model.
The cryptocurrency market has responded positively to this initiative. As of December 21, Thursday afternoon, the price of PancakeSwap (CAKE) has risen by 13% over the past 24 hours, reaching $2.5. Furthermore, the asset is experiencing strong growth of approximately 4% on a weekly basis.
In the beginning of the second half of the year, PancakeSwap, the decentralized trading platform, made an announcement regarding their collaboration with Google’s cloud service. This partnership aims to address scaling issues during peak periods of customer traffic.