PancakeSwap community proposes cutting CAKE supply. Token up about 20%.

The PancakeSwap DEX-platform community published a proposal to reduce the total CAKE token emission from 750 million to 450 million.

“Over the last year, PancakeSwap has significantly updated its tokenomics, emission parameters and growth strategy. Beginning with improving CAKE Tokenomics v2.5 and ending with the recent launch of veCAKE Gauges System 4, CAKE has room to grow further,” the forum says.

As of writing, the circulating supply of CAKE stands at about 263.8 million, according to CoinGecko.

The developers believe that a lower cap will support:

• Gaining market share across all networks and supporting the veCAKE model;
• Confidence in the future issuance of CAKE;
• Moving away from PancakeSwap’s hyperinflationary tokenomics;
• Ensuring sufficient flexibility for growth.

In the last 24 hours, CAKE’s price rose by 19.7%, according to CoinGecko. It trades above the $2.60 mark, but remains well below the all-time high reached in April 2021 ($43.96).

The supply reduction could also positively affect BNB, whose price reached $270 (+4.6% over the last 24 hours).

PancakeSwap remains the leading DeFi player in the BNB Chain ecosystem. TVL on the exchange exceeds $1.8 billion.

In the overall DEX ranking, the platform sits in third place, trailing only Uniswap and Curve in TVL. Earlier in November, PancakeSwap launched a gaming marketplace with support for NFT and the CAKE token.