The Pancakeswap community has sanctioned a governance vote to eliminate 300 million CAKE tokens from the crypto asset’s total supply. Records indicate that a substantial 97.88% of community votes supported the reduction of 300 million CAKE, decreasing the total supply from 750 million to 450 million CAKE tokens.
Near-Unanimous Vote Cuts CAKE Supply
On Dec. 21, 2023, the Pancakeswap community received a governance proposal to deduct 300 million CAKE tokens from the total crypto asset supply. Voting commenced on Thursday and concluded on Friday, Dec. 29, 2023, culminating in the community’s endorsement of the supply cut.
A resounding 97.88% of the community voted in favor of the proposal, with a mere 2.12% opposing it. The action will reduce the supply from 750 million CAKE to 450 million. “With a current circulating supply of 388M CAKE, the Kitchen believes this new and lower cap will be sufficient to gain market share across all chains and sustain the VECAKE model,” stated the original proposal.
Following the governance vote, Pancakeswap’s CAKE surged 42.6% against the U.S. dollar over the previous week and achieved an over 62% increase for the month. Nonetheless, CAKE experienced a slight dip of about 2.4% against the greenback in the past day. Currently, CAKE boasts a market capitalization of $872 million, representing 0.05% of the total $1.75 trillion crypto economy.
Currently standing as the third-largest decentralized exchange (dex) globally by volume, Pancakeswap holds $1.66 billion in total value locked (TVL) within the protocol. The dex platform has seen a 16.81% increase over the past month. Despite a monthly surge of 62% in CAKE, the dex platform’s native crypto is still trading 91.80% below its all-time high of $43.96 per coin set on April 30, 2021. As of today, CAKE’s 24-hour intraday trading range has fluctuated between $3.49 and $3.83 per unit.
What do you think about CAKE’s supply reduction? Share your thoughts and opinions about this subject in the comments section below.