The developers of the decentralized exchange (DEX) PancakeSwap have opened a vote to reduce the tokens of their CAKE ecosystem.
On Dec. 28, PancakeSwap developers presented a vote called the proposal to reduce the total CAKE token supply. The initiative involves reducing CAKE from 750 million to 450 million. The collection of votes will last 24 hours; if approved, the proposal will come into force on Jan. 4, 2024.
“Now that CAKE has achieved consistent deflation for several months and is focusing on accelerating our journey to ultrasound CAKE, this proposal aims to reduce the CAKE token’s total supply to a maximum cap of 450M CAKE.”
PancakeSwap blog
The price of CAKE reacted by rising 6.5% amid the launch of the offer. According to CoinMarketCap data, the token has increased in price by $3.74 over the past 24 hours. The market capitalization of the token also increased to $999.4 billion.
PancakeSwap head Chef Mochi also noted that with a current turnover of 388 million CAKE, the team believes that this new, lower capitalization will be enough to gain market share across all networks and support the veCAKE (vote-escrowed) model.
The veCAKE model is designed to empower CAKE holders with increased governance influence, boost liquidity across our pools and supercharge rewards for CAKE stakeholders.
Source: https://crypto.news/pancakeswap-initiates-voting-to-reduce-token-supply-cake-reacts-with-6-surge/