- The PancakeSwap community has approved a proposal to remove 300 million CAKE from the project’s maximum supply.
- The proposal passed with nearly 98% of votes in favor.
- The price of CAKE has fallen sharply over the past 24 hours, down 9.5% near $3.46.
The PancakeSwap proposal to reduce the decentralized exchange token supply from 750 million CAKE to 450 million CAKE has passed. Voting on the proposal opened on Thursday, December 28 and closed on Friday, December 29.
According to details on the voting page, 97.88% of all votes passed the proposal, paving the way to officially reduce CAKE’s maximum supply to 450 million units. Currently, the total supply is 386,192,564 and the maximum supply is 450 million, according to details from market-leading aggregators CoinGecko and CoinMarketCap.
“Reducing the token supply by 300,000,000 $CAKE means PancakeSwap has successfully transitioned from a high-inflation emissions model to the Ultrasound CAKE era.” commented the PancakeSwap team.
The move to reduce CAKE’s maximum supply adds to PancakeSwap’s overall overhaul across its token economics, emissions and growth strategy.
“From v2.5 improvements to CAKE token economics to the recent launch of the veCAKE gauge system, CAKE is positioned to pursue further growth across all distributions.” read the proposal.
Cake prices plummet
CAKE prices have fallen sharply over the past 24 hours and have been trending lower since the proposal passed.
CAKE was trading at around $3.46 per token at 12:40 PM ET on Friday, down 9.5% over the past 24 hours. CAKE has remained in the green over the past week and month, but has pared its recent gains to 37% and 56% over the two periods, respectively.
CAKE hit a high of $4.68 in February and remains well below its all-time high near $44 reached in April 2021.
The decline in altcoins today came as market cap fell 1.7% and Bitcoin (BTC) fell below $42,000.
As of this writing, most of the top altcoins are down. However, with the cryptocurrency largely in bullish territory, new buying CAKE momentum could see the token’s value retest higher resistance levels.