PancakeSwap, one of the leading decentralized exchanges, has announced a significant proposal to lower the maximum supply of its native token, CAKE. This move is part of a broader strategy to adapt to the evolving market conditions and enhance the token's value. The source notes that this decision aims to create scarcity and potentially increase demand among investors.
Proposal to Reduce CAKE Supply
The proposal suggests reducing the maximum supply of CAKE from 450 million to 400 million tokens. This decision is influenced by a deflationary trend that has emerged since the introduction of Tokenomics 3.0, which has resulted in a net burn of CAKE tokens. The PancakeSwap team, known as the Kitchen, argues that the current cap does not accurately reflect the operational dynamics of the protocol.
Goals of the Supply Cap Reduction
By lowering the supply cap, PancakeSwap aims to establish a more realistic upper limit that allows for greater operational flexibility. The team is actively seeking community feedback on this proposal before moving forward with an official on-chain vote. This initiative underscores PancakeSwap's commitment to engaging its user base in key decisions that affect the ecosystem.
Following PancakeSwap's recent proposal to reduce the supply of its CAKE token, the Mission 70 initiative aims to boost demand for ICP tokens through strategic supply-side adjustments. For more details, see read more.
