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- The PanCakeSwap community has overwhelmingly supported a proposal to reduce the $CAKE token’s maximum supply from 750 million to 450 million.
- The $CAKE price has surged by 50% in the past week, reaching $3.69, with potential for a 58% increase toward the $5.5 peak.
The PanCakeSwap community has shown a strong and positive response to the proposal for a token supply cut on Thursday, December 28, 2023. The voting process, initiated by the PanCakeSwap team, aimed to reduce the token supply from 750 million to 450 million.
In a matter of hours, the proposal received overwhelming support, with over 97.88% of the 858,490.53 of votes expressing their approval. The updated maximum token supply figures for $CAKE are expected to be officially reflected on major price-tracking platforms, such as CoinGecko and CoinMarketCap, by January 4.
Following the completion of the vote, $CAKE was trading at $3.70 at 4:49 a.m. ET. While the token has experienced a slight 1% pullback in the past 24 hours, it has seen an impressive gain of over 49% in the past week.
PancakeSwap Achieving Consistent Deflation
Last week, PancakeSwap unveiled a proposal to decrease the supply of $CAKE by 300,000,000 tokens, signaling a shift from a high-inflation emissions model to a more efficient flywheel, as stated on X. The reduction aims to move towards the goal of achieving “ultrasound $CAKE” and to signify a departure from a highly inflationary model.
The PancakeSwap team highlighted that this strategic adjustment aligns with their vision for a robust, deflationary model, following consistent deflation in recent months. The total supply of the $CAKE token will now have a maximum cap of 450 million $CAKE.
Over the past year, PancakeSwap has undergone substantial changes in its tokenomics, emissions, and growth strategy. Additionally, plans are in motion to introduce a vote-escrowed model, enabling $CAKE holders to stake their tokens for veCAKE, offering staking rewards and incentives. The proposal team said:
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 450 million $CAKE. With a current circulating supply of 388 million $CAKE, the Kitchen believes this new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model.
The $CAKE Price Prediction
In the past week, the PancakeSwap ($CAKE) price has witnessed a remarkable 50% surge, currently trading at $3.69 with a market cap of $900 billion.
For over a year, the $CAKE token experienced a consistent downtrend within a falling wedge pattern, where the converging trendline served as significant support and resistance, confining the downward movement.
However, buoyed by a bullish sentiment across the cryptocurrency market, $CAKE hit its bottom at $1.05, initiating a robust recovery. Over the last ten weeks, the coin’s price soared by 258%, reaching a new yearly peak of $3.79.
During this bullish rally, the coin broke above the upper boundary of the wedge pattern, signaling an early indication of a trend reversal. In an ideal scenario, the $CAKE price is expected to rally towards the wedge pattern’s highest point, currently at $5.5, indicating a potential increase of 58%.
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coindesk.com
cryptopolitan.com