Hassan Maishera
The Pancakeswap team announced via X on Thursday that it has submitted a new proposal that seeks to reduce the maximum token supply of CAKE. The team has proposed that the CAKE token supply should be reduced from 750 million to 450 million.
So far, the community members have voted in favor of reducing the total token supply. 97.85% of the total votes cast so far are in favor of reducing the CAKE token supply, with only 2.15% supply voting against it.
According to the team, by reducing the token supply by 300,000,000 $CAKE, it signal PancakeSwap’s successful pivot from a high-inflation emissions model, to a much more efficient flywheel. With a current total supply of 388M CAKE, the team believes this new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model.
PancakeSwap is a BNB Chain-based decentralized exchange (DEX) with an automated market maker (AMM) model for swapping BEP-20 tokens. CAKE is up by 5% today and is currently trading at $3.605.
