PancakeSwap CAKE jumped by more than 20% after offering to reduce the token supply by 300 million 🤯
The decentralized PancakeSwap exchange has made a significant move by offering to reduce the maximum supply of its native token, CAKE, by 300 million. This step led to an impressive increase in the price of the token by more than 20%.
At 9:20 a.m. ET, CAKE was trading at $2.52, marking a 13.1% gain over the past 24 hours. These changes were prompted by the announcement from PancakeSwap to reduce the CAKE supply from 750 million to 450 million.
PancakeSwap representatives stressed that this step is a key moment in the evolution of the platform, noting the successful transition from a high inflation model to a more effective strategy. "Reducing the supply by 300 million CAKE is a signal of our successful movement towards a more efficient mechanism," they stressed.
Over the past year, PancakeSwap has been actively reviewing its tokenomics in an effort to improve its issuance and growth strategy. It is noted that thanks to improvements in CAKE Tokenomics v2.5 and the recent launch of the veCAKE Gauges system, the platform is ready for further growth in various directions.
Now that CAKE is demonstrating steady deflation and focusing on achieving ultrasonic CAKE, the proposal to reduce the total token supply to a maximum limit of 450 million CAKES seems strategically justified. With a current turnover of 388 million CAKE, The Kitchen, the development team, is confident that the new lower limit will be sufficient to gain market share and maintain the veCAKE model.
