🚀🔥PancakeSwap: the plan to reduce the supply makes CAKE fly
The PancakeSwap dex presented to the community its plan to reduce the total supply of the native CAKE token. The operation will see the total supply reduced to 450 million tokens compared to the current 750 million, and CAKE seems to have already started pricing the initiative, given that the price recorded a +23% (then reduced) shortly after platform announcement.
👉The plan follows a purpose that has already been clear for several months to the PancakeSwap team, which has long pursued what the dex calls "coherent deflation", i.e. the gradual reduction of supply through burn mechanisms. At this moment, however, the contribution of the community as a whole will be essential to continue with a decisive step.
Currently, the total supply still stands at 750 million tokens but, of these, there are approximately 388 million CAKEs in circulation, constantly decreasing, and with a value that aims to reach 3 dollars.
👉🔥The final objective, according to the PancakeSwap devs, is what has been renamed "Ultrasound Cake", a truly deflationary project towards which CAKE must be oriented. And this, for several reasons. First of all, a smaller supply would guarantee more precise estimates for its growth objectives, but above all it would distance CAKE from a "hyperinflationary" scenario, dangerous for the very future of the platform in circumstances in which the market were to present difficulties.
The watchword, essentially, seems to be "sustainable growth", made possible only by the flexibility of the protocol and a greater market share on other chains.
The community, in the meantime, seems to have welcomed the platform's initiative, which after some time sees CAKE returning to a bullish position. The performance of the token, moreover, had not followed the bullish trend of the altcoin sector very much, but the recent rise seems to have put a dent in the losses of recent months.