Pancakeswap community proposes reducing CAKE’s total supply 

Pancakeswap community has issued a proposal pending voting to reduce the total supply of CAKE. The community said it will help in gaining market share across chains and support the veCAKE model.

The community is proposing an adjustment to the total supply of CAKE tokens. Currently, there are 750 million CAKE tokens, but the proposal suggests reducing it to 450 million. This means removing a total of 300 million CAKE tokens from the existing supply. According to the community, implementing a new cap of 450 million CAKE tokens is reasonable to ensure sufficient supply for future growth.

Furthermore, the suggestion is to achieve this by reducing the maximum cap on token supply.

As part of the ecosystem’s updates, CAKE Tokenomics v2.5 was initially introduced. More recently, veCAKE was launched, which aims to provide CAKE holders with increased governance influence, improved liquidity, and enhanced rewards for CAKE stakers.

After successfully achieving consistent deflation, the community has acknowledged that CAKE is now confronted with the pursuit of further growth.

The community is carefully considering this decision for several compelling reasons. These include ensuring certainty for the community regarding future CAKE token supply, facilitating growth, and accelerating towards an “ultrasound” CAKE.

“Lowering this number is a critical step to achieve ultrasound CAKE and to send a clear signal of PancakeSwap’s pivot away from a hyperinflationary tokenomics model,” the community stated.

Although the proposal has not yet been published for voting, the majority of community members who commented on the discussion expressed a positive outlook on the initiative.

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