- PancakeSwap has introduced a vote on a new proposal.
- The proposal seeks to adjust the maximum CAKE token supply.
- The voting will close on Friday.
Decentralized exchange (DEX) PancakeSwap has proposed cutting millions of its native ecosystem token, CAKE, from the maximum supply.
On December 28, PancakeSwap’s decentralized autonomous organization (DAO) introduced a vote proposal to cut CAKE’s total supply by 300,000,000 and cited several “strong reasons to implement this adjustment.”
Proposal to Adjust CAKE Total Supply
According to an earlier announcement, the proposal seeks to adjust the CAKE Total supply from 750,000,000 CAKE to 450,000,000 CAKE.
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“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,” the statement read.
Per the statement, besides providing the community with the certainty of the future of CAKE token supply after almost three years in development, the adjustment would “accelerate the journey to ultrasound CAKE” and ensure sufficient flexibility for growth.
The exchange further noted that the current total supply of 388M CAKE and the new and lower cap would be sufficient to gain market share across all chains and sustain the veCAKE model.
“450M CAKE is a reasonable new cap as it ensures sufficient supply for future growth (e.g., gaining market share on Ethereum, Ethereum L2s, and new initiatives like position managers).”
With the proposal on the table, the PancakeSwap community proceeded to vote.
PancakeSwap Community Decides
The proposal comes after PancakeSwap introduced its “Gauges Voting” vote-escrowed system that allows users to pass governance proposals.
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At press time, 325,424 votes were cast in favor of the proposal, while 17,535 opposed reducing the CAKE supply. The voting began on December 28 and will end on December 29 at 8:00 am UTC.
If the proposal passes, the reduction will be implemented by January 4, 2024.
Read how THORChain recently outpaced PancakeSwap:
THORChain Flips PancakeSwap as #2 DEX with 50% Gains
Learn more about THORSwap’s run-in with regulators here:
THORSwap Token Swaps Return, But at What Cost?
