Pancake Swap Launches Critical Vote to Reduce Cake Emissions, Token Gains 6%

The developers of the largest decentralized exchange built on the BNB Beacon Chain (formerly BSC) network have launched important vote Accordingly, it is proposed to reduce the number of native cake tokens being sent directly to the farm pool on Pancake Swap. The main purpose of the vote is to limit issuance and thus reduce [...]

Pancake Swap Launches Critical Vote to Reduce Cake Emissions, Token Gains 6%

The developers of the largest decentralized exchange built on the BNB Beacon Chain (formerly BSC) network have launched important vote Accordingly, it is proposed to reduce the number of native cake tokens being sent directly to the farm pool on Pancake Swap.

The main purpose of the vote is to limit issuance and thus reduce cake token inflation. Also, it will negatively affect the annual interest rate of the CAKE-linked farm and staking pool. Full details of voting are available at pancake swap Website. The vote will last for two days and will be completed on the morning of June 25.

not many cakes

Inflation regulation is extremely important for cryptocurrencies. In the case of the same cake, the token had a maximum circulation limit, which the developers of PancakeSwap explained by the need to incentivize users to provide liquidity, which is quite justified, as the availability of liquidity is the key to the performance of any exchange. . , As a result, holders were forced to put their tokens into the pool on a regular pancake swap to avoid losing a third of the value of their cake each year.

To remedy this problem on 12 May, a vote to limit the maximum supply of cakes to 750 million tokens began and ended with a decision in its favour. As a result, this brought the total number of tokens in circulation, calculated excluding burned tokens, to 307.4 million keck. CoinMarketCap, The decision had a very positive effect on cake quotations; At the time, the coin was up about 40% in two days.

advertisement

Despite such positive developments, the crypto market sentiment has been extremely bearish in recent months, and the price of the token has since fallen by as much as 30%. Nevertheless, the PancakeSwap builders chose not to stop and make all the necessary decisions when the price of the token is hanging down. After the announcement of the recent vote, the price of Cake increased by 7.5% and after a minor correction, it stopped at $3.2 per coin.

CAKEUSDT 2022 06 23 14 55 14Source: trading view

PancakeSwap currently has a capitalization of $484 million, compared to $6.5 billion from $5.3 billion at the time of Unlimited’s issue. With such differences in valuations, it can be suggested that if the project manages to survive this stage of crypto market development – ​​which is hard to doubt as Binance is the only one backing the project – cake has a good chance of returning to the top projects. Capitalization Terms.


source: u.today