The popular PancakeSwap just made an exciting announcement. With a notable 23% increase in the price of the CAKE token (also tradable on BLOX as of this week) in the past 24 hours, PancakeSwap has unveiled its proposal to drastically reduce the total supply of CAKE. This news caught the attention of investors and crypto enthusiasts around the world.
A drastic reduction in total inventory
PancakeSwap today opened a discussion about a bold plan to significantly reduce the total supply of the CAKE token. The proposal aims to reduce the current total stock of 750 million CAKE by more than 300 million, with the aim of setting the maximum stock at 450 million. This decision comes after months of “consistent deflationary policies” with several symbolic fires.
???? Family PancakeSwap!
???? We propose to reduce the maximum token supply $CAKE from 750 million to 450 million.
???? After a year of hard work and venting, we are laser focused on ultrasonic CAKE.
???? Reducing our token supply by 300,000,000 $CAKEwe signal the success of PancakeSwap… pic.twitter.com/PIK3SBEhiJ
— PancakeSwap????Everyone’s Favorite DEX (@PancakeSwap) December 21, 2023
“Ultrasonic cake” model and major justifications
PancakeSwap presented this proposal as a commitment to its plan to transform CAKE into a deflationary model called “Ultrasound Cake”. According to him, there are several important reasons for this. First, a smaller total inventory provides more accurate estimates of the incentives needed to achieve your growth goals. Moreover, they see this as a decisive step away from a hyperinflationary tokenomic model.
Furthermore, the platform believes that reducing the token supply will provide enough flexibility for growth. This allows them to gain market share across all blockchain networks and maintain the veCAKE model.
Positive response from investors
This proposal follows a more aggressive token burn previously conducted by the platform. The announcement seems to have been well received by investors, as the value of the CAKE token has increased by 23% in the last 24 hours.
After a series of price declines, the CAKE token has fully recovered the losses previously recorded on the weekly and monthly charts. This development has caught the attention of the crypto community and promises an exciting time for PancakeSwap and its investors.
PancakeSwap tradable on BLOX
From December 19, you can also trade BOLO on BLOX! View the currency directly in the app.
Source: BtcDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
