PancakeSwap Commences Voting to Decrease Token Supply; CAKE Surges by 6% in Response
The team behind the decentralized exchange (DEX) PancakeSwap has initiated a voting process to decrease the number of tokens in their CAKE ecosystem.
On December 28th, the developers of PancakeSwap introduced a proposal to reduce the total supply of CAKE tokens. The plan involves decreasing the amount of CAKE from 750 million to 450 million. The voting period will last for 24 hours, and if the proposal is approved, it will be implemented on January 4th, 2024.
The announcement of the proposal led to a 6.5% increase in the price of CAKE. According to data from CoinMarketCap, the token has risen in value by $3.74 in the past 24 hours. The market capitalization of the token has also surged to $999.4 billion.
Chef Mochi, the head of PancakeSwap, highlighted that with the current circulation of 388 million CAKE tokens, the team believes that this reduced capitalization will be sufficient to gain a larger market share across all networks and support the veCAKE (vote-escrowed) model.
The veCAKE model aims to empower CAKE holders by giving them increased influence over governance, enhancing liquidity across pools, and providing greater rewards for CAKE stakeholders.
For more information, please read:
PancakeSwap expands into the gaming industry with the introduction of a new web3 integrated marketplace.
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