PancakeSwap, the top three decentralized exchanges, following the previous introduction of the veCAKE mechanism, officially released a governance proposal to reduce the supply of 300 million tokens. It is quite active in restructuring the token economy, but the currency price has not responded much.

(Pancakeswap launches veCAKE, will it start a new round of LSD war?)

PancakeSwap proposal: Token supply cap reduced by 300 million coins

PancakeSwap’s official Twitter released a proposal on the afternoon of the 28th to reduce the maximum supply of CAKE from 750 million to 450 million, saying that it would improve the original Qualcomm expansion coin model.

PancakeSwap Fam, the moment is here!

Proposal to reduce the max supply of $CAKE from 750M to 450M!

By reducing our token supply by 300,000,000 $CAKE, we signify PancakeSwap’s successful shift from a high-inflation emissions model to the Ultrasound CAKE era.

Vote for… pic.twitter.com/3zCzoBBiRl

— PancakeSwapEveryone's Favorite DEX (@PancakeSwap) December 28, 2023

The governance proposal pointed out that PancakeSwap has greatly improved the token economy, inflation issuance and other mechanisms in the past few months, and achieved several months of token deflation. In order to focus more on this, it was decided to change the CAKE supply limit to 450 million coins. .

The current circulating supply of CAKE is 388 million. Officials believe that the new supply limit is enough to compete in the market share of each chain and maintain the veCAKE token model.

The approval rate before the deadline was as high as 92.65%.

PancakeSwap Proposal CAKE Coin Price Only Slightly Reacts

CAKE rose 32% to $3.79 on the 26th, and after PancakeSwap’s tweet, CAKE rose again but only gained 10%.

CAKE｜1H chart

This article PancakeSwap proposal｜CAKE token supply limit reduced by 300 million, approval rate as high as 90% first appeared in Chain News ABMedia.