PancakeSwap community backs 300 million CAKE burn

Proposal DEX PancakeSwap to reduce CAKE’s issuance from 750 million to 450 million, supported by 98% of community members.

“By reducing the number of our tokens by 300 million, we mark PancakeSwap’s successful transition from a high-inflation emission model to an ultrasound-money era,” the proposal description states.

According to the project team, over the past several months the token has achieved a deflationary model, and the emission reduction will strengthen its position.

It is expected that by January 4, 2024, updated data on CAKE’s maximum circulating supply will be officially reflected on major digital-asset tracking platforms.

According to CoinGecko, at the time of writing the token’s circulating supply stands at 243 million.

CAKE hardly moved after the proposal’s approval, slipping 3.9% in 24 hours. However, earlier—following the initiative’s December 21 announcement—the asset rose by 20%.

On December 26, PancakeSwap burned 10 million CAKE for $34 million as part of the emission reduction. In response, the token surged by 25%.

In November, the DEX launched a gaming marketplace with NFT support and the CAKE token.