PancakeSwap, the decentralized exchange based on BNB Chain, has proposed to impose a supply cap of 750 million for its native token, CAKE.
CAKE 750M Max Supply and Revised Tokenomics
The decentralized exchange (DEX) noted that the 750M supply cap was chosen because it better fits its goals and also provides a “conservative, fair value valuation to BNB Chain’s premier dex.”
The platform also intends to add value to the PancakeSwap staking system, including scaling up governance voting, boosting Initial Farm Offering (IFO) benefits, and increasing farm rewards with the creation of vCAKE, iCAKE, and bCAKE respectively.
“We believe that having a max supply cap, and also incentives for an even smaller effective circulating supply, better reflects the value, community, and sustainability of PancakeSwap.”
Considerating the current CAKE circulating supply, which is at 295 million, PancakeSwap estimates the maximum supply to be circulated within three years.
According to the platform, the three-year period is the highest compared to the other DEXs like Uniswap, SushiSwap, and TraderJoe, who have the max supply cap of their tokens to be between one to two years from now.
To include the community members in the decision, the platform opened a 24-hour governance voting medium for members of the PancakeSwap community to vote on the proposal. A total of 98.8% of members with over 10,000,000 CAKE votes agreed to the implementation of the proposal.
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
The platform also scheduled its first Twitter Space AMA to engage with community members and answer any questions they may have about the new updates.
PancakeSwap hit a 1.5 Billion Trading Volume
In a recent development, PancakeSwap ranked the largest decentralized exchange by trading volume after beating other DEXs including the Ethereum-based DEX, Uniswap, with about 1.5 billion daily trading volume.