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- PancakeSwap wants to reduce the total supply of CAKE.
- This makes the token “ultra-sound” and usable on multiple chains.
In a game-changing move, members of the governance community of popular decentralized exchange (DEX) PancakeSwap (CAKE) are voting. proposal Significantly reduces the total supply of native tokens.
If this proposal is approved, the maximum supply of CAKE will be reduced by 40%, from 750 million to 450 million.
🐰💙PancakeSwap Fam, the moment has arrived!
🥞Proposal to reduce maximum supply $cake From 750M to 450M!
🌟By reducing the token supply by 300,000,000 $cakeWe believe PancakeSwap marks a successful transition from a high-inflation emissions model to the Ultrasound CAKE era.
🗳Vote… pic.twitter.com/3zCzoBBiRl
— PancakeSwap🥞Everyone’s Favorite DEX (@PancakeSwap) December 28, 2023
According to the proposal, the decision to drastically reduce the supply of CAKE I need to create a token ultrasound.
PancakeSwap mentioned:
“Total supply is an important metric when understanding the impact of token burns and future emissions. Lowering this number is an important step toward achieving ultrasonic CAKE and allows us to send a clear signal about PancakeSwap’s pivot away from a hyperinflationary tokenomics model.”
DEX also believes that by reducing the total supply of CAKE, it can gain market share from other chains.
The vote, which opened on December 28 and will end on December 29, received overwhelming support from the community. As of this writing, more than 98% of voters are in favor of downsizing.
The number of users is high, but the deposits are low.
PancakeSwap’s V3 iteration recorded $12 billion in trading volume last month, making it the third decentralized finance (DeFi) protocol with the highest trading volume last month. DappRadar.
Due to a series of ecosystem updates completed on the DEX in 2023, PancakeSwap has seen a steady increase in the number of monthly active users.
Source of data token terminal This represents a 29% increase since January. So far this month, 1.8 million addresses have completed at least one transaction on the exchange.
However, despite the increase in user activity, PancakeSwap’s net deposits have been trending downward since February. This metric measures the difference between the total value of tokens added to an exchange’s liquidity pool and the total value of tokens removed.
If this decreases, it means more tokens are being withdrawn than are being added, implying reduced liquidity and potentially lower trading volume.
AMBCrypto found that PancakeSwap’s net deposits have fallen 41% since February. This pushed the DEX’s monthly trading volume to a record high of $17.38 billion in May.
Source: Token Terminal
This resulted in network fees and revenues reaching record highs in the same month.
How much is 1,10,100 cakes worth today?
PancakeSwap’s network fees totaled $17.3 million in May and have declined 40% since then, according to data from Token Terminal.
Likewise, protocol revenue has declined 45% since then, to $5.6 million in May.