PancakeSwap, the popular decentralized exchange (DEX) native to BNB Chain, has just completed its latest burn schedule, destroying 8,628,169 CAKE tokens worth $10 million from circulation.
Burn Schedule
As revealed by PancakeSwap on Monday, most CAKE burned in the latest schedule came from trading fees, with 216,000 tokens burned from V2 and Perpetual trading fees and 80,000 from V3 trading fees.
The DEX also revealed significant burns from Prediction, Lottery, non-fungible tokens (NFT) Market, and Profile & Factory.
According to PancakeSwap, the amount of CAKE burned from V3 trading fees increased by 109% from the previous week’s burn. In contrast, the amount burned from Prediction, Lottery, and NFT Market, Profile & Factory decreased by 24%, 32%, and 50%, respectively.
Last week, the exchange announced it destroyed $16 million worth of CAKE, with 233,000 CAKE tokens burned from V2 and Perpetual trading fees and 38,000 burned from V3 trading fees.
For newcomers, token burn involves permanently removing a certain number of tokens from circulation. This is done by sending the tokens to an “eater” or “burn” address with no known private keys, thus making them inaccessible or unattainable.
This initiative, popular among several cryptocurrency projects, is done to reduce the supply of tokens in circulation, which can help to increase the price of the remaining tokens. Another reason is to combat inflation, which can occur when too many tokens are in circulation.
PancakeSwap has stated that it is burning CAKE tokens to combat inflation and ensure the sustainability of its ecosystem.
Impressive Milestone
Meanwhile, the latest burn schedule comes as PancakeSwap is experiencing impressive growth. The project recently tweeted that it recorded $19.56 billion trading volume and $298.73 million total value locked (TVL) on its V3 as of the end of September.
At the time of writing, CAKE was trading at $1.16, dropping 1.84% over the last 24 hours.
