PancakeSwap’s CAKE price has plummeted more than 20% in recent days as proposed changes to its token system have not been well received by the community. PancakeSwap, a leading DEX on BNB Chain, has proposed to adjust the supply of CAKE to reduce the inflation rate from 20% to only 3-5%.
Cake price chart. Source: Coinecko
However, the proposal also includes reducing rewards for traders and stakeholders by up to 68%. The move caused many users to abandon the DEX, resulting in a sharp drop in the price of the CAKE token, which currently trades at $2.66. The vote highlighted the divide in the community, with 41.63% in favor and 56.42% against, with the remainder opting for a different inflation rate.
According to PancakeSwap, the project will only implement the plan if more than 50% of users agree. With over 1.5 million users, PancakeSwap is the top DEX on the BNB Chain and it recently launched version V3 with new unique features. In May 2022, the platform proposes to limit the supply of CAKE to 750 million instead of unlimited supply.
Currently, there are about 193 million CAKEs in circulation, and if the new proposal is accepted, the future supply of CAKEs is expected to decrease significantly. The proposal aimed to control inflation and stabilize the value of CAKE, but it was not popular with the community due to the reduction of tarder and staker rewards.
PancakeSwap has yet to announce next steps for the proposal, but they will likely continue to work on solutions to community issues while achieving their goals of reducing inflation and stabilizing token value. cake.
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according to Kyptos