PancakeSwap Plans To Reduce CAKE Token Supply By 300 Million

Decentralized crypto exchange, PancakeSwap, on Thursday plans to reduce the supply of its $CAKE token by 300 million. This move was welcomed by most of its voting community.

The decentralized autonomous organization (DAO) controlling the governance of PancakeSwap floated a vote proposal to reduce the maximum supply of $CAKE from 750 million to 450 million.

The voting period began in early European hours on Thursday and will last until 8:00 am UTC on Friday.

If the proposal is passed, the reduction will be implemented by January 4th, 2024.

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Over 99.95% of the community, representing 70,000 votes from $CAKE holders, favored the proposal shortly after it went live.

In a recent message, a PancakeSwap team member said the reduction in $CAKE puts the project “in a position to pursue further growth across all deployments.”

“With a current circulating supply of 388 million $CAKE, the team believes this new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model,” Chef Mochi, head of PancakeSwap, said in a Telegram message.

$CAKE token prices are up nearly 10% in the past 24 hours, with most of the movement taking place shortly after the proposal was floated, data from Coinstats shows.