PancakeSwap caps CAKE supply at 750 million tokens

The DeFi community behind PancakeSwap on the BNB Chain backed changes to the tokenomics, the key feature of which will be a cap on the supply of the governance token CAKE at 750 million tokens.

🗳️🎉 Wow!

You, our community, overwhelmingly supported our latest proposal, and we will be working hard to build and deliver on PancakeSwap’s future.

We will be hosting an AMA later today at 13:00 UTC – not just on tokenomics – so do join us if you can. pic.twitter.com/cM6RyF2Y1P

— PancakeSwap 🥞 #BSC (@PancakeSwap) May 12, 2022

Votes in favour totaled 98.8% of the votes.

The PancakeSwap team said that the proposed upgrade “will boost the profitability of the IFO and yield farming of the locked CAKE.” The developers plan to implement the changes “in the near term.”

As of writing, there are more than 296 million CAKE in circulation (CoinGecko). The plan is for the full issuance to end within three years.

Chef Icy, the project’s business development lead, told Cointelegraph that the timeframe is a conservative estimate based on a release of 14.25 tokens per block. In reality, due to regular burns, the effective per-block emission is about 10.5 CAKE. Based on this, the full issuance would take around 4.5 years, Chef Icy assessed.

Uniswap, the platform that PancakeSwap largely copied, released the UNI token in 2020 with an initial supply of 1 million coins.