The decentralized exchange (DeFi) protocol PancakeSwap’s native token CAKE’s maximum supply reduction proposal from 750 million to 450 million was approved with approximately 98% of the votes in favor. On December 28, the DeFi protocol PancakeSwap published a voting proposal to reduce the maximum token supply of CAKE.
PancakeSwap Voting Ends
After an excited wait on PancakeSwap’s side, the voting period has ended, and the final results showed a 97.88% majority in favor of reducing the maximum token supply from 750 million to 450 million.
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. According to data from TradingView following the vote, the price of CAKE has seen a 3.23% increase in the last 24 hours, trading at $3.70.
The reason for the change in token supply considered by PancakeSwap is to signal a move away from a high inflationary model. The PancakeSwap team stated the following:
“After achieving consistent deflation in recent months, this latest strategic move to reduce the total supply of CAKE tokens to a maximum of 450 million CAKE is in line with PancakeSwap’s vision of a robust and deflationary model.”
Noteworthy Details About the CAKE Token
Last week, PancakeSwap announced a proposal to reduce the supply of CAKE. The PancakeSwap team shared the following statement on social media platform X:
“By reducing our token supply by 300 million CAKE, we signal a successful transition from PancakeSwap’s high inflation emission model to a much more efficient model.”
Over the past year, PancakeSwap significantly revamped its growth strategy and managed to capture everyone’s attention. Plans are being made to offer a voting-based model that allows CAKE holders to stake their assets for “veCAKE,” which includes stake rewards and incentives:
“At a time when the CAKE token has reached consistent deflation over the past few months and we are focused on accelerating this journey, this proposal aims to reduce the total supply of the CAKE token to a maximum of 450 million CAKE. With the current circulating supply of 388 million CAKE, we believe this new and lower limit will be sufficient to gain market share across all chains and sustain the veCAKE model.”
