- PancakeSwap’s CAKE has recently enjoyed a price spike reaching as much as $3.04 following a proposal to reduce the maximum supply by 300 million.
- This proposal marks a significant milestone for the project that is seeking to fix its high-inflation emissions model.
PancakeSwap (CAKE) investors are rejoicing in a new development in the project. According to the proposal announced by the development team, the project will seek to reduce the max token supply of $CAKE from 750M to 450M. This will reduce the maximum supply by 300 million.
Shortly after the announcement of this development, the token rallied by as much as 20%. In recent days, CAKE has continued on an upward trajectory to reach as high as $3.04 before meeting resistance. At the time of press, the token has retraced to trade at $2.85 after a drop of nearly 2%.
The development team is now calling on the community to participate in discussions about improving the proposal. The team notes;
By reducing our token supply by 300,000,000 $CAKE, we signal PancakeSwap’s successful pivot from a high-inflation emissions model, to a much more efficient flywheel.
It further continues to explain that, “over the past year, PancakeSwap has significantly revamped its tokenomics, emissions, and growth strategy,” which sets up the project for further growth. The proposal adds;
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,
A few days ago, PancakeSwap – a leading all-in-one decentralized exchange – integrated Chainlink Data Streams and Automation on Arbitrum mainnet. This collaboration stands out for its ability to offer sub-second price resolution and advanced frontrunning protection.
.@PancakeSwap is integrating #Chainlink Data Streams and Automation on @arbitrum to help power its prediction markets.
How the Chainlink platform powers high-integrity and high-performance DeFi
https://t.co/PFygTV754G
— Chainlink (@chainlink) December 19, 2023
Based on its development in recent months, CAKE is set to dominate the market in the upcoming bull market. The token offers investors a unique opportunity to create massive wealth based on its historic trend. The token reached its all-time high of $43.96 about two years ago. The token has lost around 93% since, uniquely placing it as a low-risk high potential investment. Since its debut in 2020 for $0.194441 the token has gained more than 1,300%. If the token posts similar gains over the coming months, this will see it create generational wealth for investors.
