The price of CAKE
+13.13%
CAKE
+13.13%
, the native token of the decentralized exchange PancakeSwap, spiked more than 20% following a proposal to reduce the maximum supply by 300 million.
CAKE was trading hands at $2.52 at 9:20 a.m. ET, an increase of 13.1% increase over the past 24 hours, according to The Block’s Price Page for CAKE.
Price activity for PancakeSwap’s CAKE token. Image: The Block’s Price Page
PancakeSwap announced on Thursday a proposal to cut CAKE’s supply from 750 million to 450 million.
“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,” PancakeSwap wrote on X.
The proposal
“Over the past year, PancakeSwap has significantly revamped its tokenomics, emissions and growth strategy,” the proposal for the token reduction stated. “Starting from improving CAKE Tokenomics v2.5 to most recently launching the veCAKE Gauges System, CAKE is in a position to pursue further growth across all deployments.”
“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 proposal added.
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About Author
MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University’s Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.