PancakeSwap Community Proposes CAKE Token Total Supply Reduction to 450 Million
Decentralized cryptocurrency exchange, PancakeSwap plans to reduce the total supply of CAKE after a community proposal was announced to sustain its development roadmap.
The team proposed the reduction via a community forum highlighting the development recorded so far and the need to improve tokenomics taking the platform to the next level.
The new proposal seeks to reduce the total supply from 750 million tokens to 450 million tokens and with a circulating supply of 388 million CAKE, some community members believe the lower cap an help it gain sufficient market share across networks.
“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 450m CAKE.”
Still, in its early stages, members of the community are urged to discuss the proposal before voting. The platform has recorded significant progress which can be seen from the CAKE tokenomics v2.5 and the veCAKE system promising to improve emissions, and a growth strategy.
The team raised several reasons for the proposed development ranging from certainty for the community on the platform’s token supply to boost its roadmap to ultrasound CAKE and to ensure flexibility for growth.
According to the forum’s post, reducing 300 million tokens will give the community more accurate projections of incentives meant to achieve growth adding that more gains will be recorded since it launched in 2021.
”total supply is an important metric when understanding the impact of token burns and future emissions. Lowering this number is a critical step to achieve ultrasound CAKE and to send a clear signal of PancakeSwap’s pivot away from the
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