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The PancakeSwap community has until December 29th at 16:00 to decide on a shocking proposal: to reduce the supply of CAKE cryptocurrency by 300 million, currently limited to 750 million. If this measure were to pass, the ceiling would be raised to 450 million.
PancakeSwap will be able to burn 300 million CAKE tokens
The PancakeSwap community has just launched a major vote on the future of their CAKE crypto. This includes drastically reducing the total supply, which is currently limited to 750 million units, to 300 million tokens.
The new projected ceiling would then drop to 450 million. A significant reduction, equivalent to 40% of the current supply, which will have a significant impact on the shortage and inevitably on the price of CAKE.
The timing of this vote appears to be perfect for a CAKE price hike. In the last week alone, the cryptocurrency jumped 45% to $3.63. Confirmation of a supply cut could act as a decisive catalyst, pushing it to new all-time highs.
By drastically tightening the grip on available CAKE tokens, PancakeSwap would cause an immediate scarcity effect with potentially devastating upward effects. Investors are already actively speculating about the spectacular rise that would occur if the Dec. 29 vote ratifies this bid coup.
A significant reduction in supply, a strong signal for the future
As of April 2023, PancakeSwap is engaged in a transition to a deflationary token model called “Ultrasound CAKE”. Thanks to the “token burning” system, over 102% of the new CAKEs issued each week are destroyed, leading to permanent deflation.
The drastic reduction of the emission cap to 450 million tokens is therefore seen as a crucial step to accelerate the adoption of this virtuous model of CAKE’s programmed scarcity.
Remember that PancakeSwap has established itself as one of the flagship decentralized finance projects in a short period of time. Originally built on the Binance Smart Chain, this DEX (decentralized exchange) allows you to exchange a wide variety of tokens without going through centralized platforms.
In addition to the primary exchange function, PancakeSwap offers a wide range of DeFi products: betting, farming, liquidity pools, lotteries… The CAKE crypto is the heart of this rich ecosystem and serves as both an exchange currency and a reward for users.
Should this historic December 29th vote ratify CAKE’s shock supply reduction, it would send an extremely positive signal about the future of PancakeSwap, paving the way for a potential increase in the value of the famous CAKE token.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.