Decentralized Finance (DeFi) application PancakeSwap has released a governance proposal that details several goals of its native token, CAKE. It garnered a 98.8% majority across 11 million votes in a voting window of a 24-hour period, while opposition accounted for a mere 131K participants.
The second iteration of PancakeSwap’s tokenomics roadmap imposes a maximum supply cap of 750 million for the CAKE token.
The proposal, which received overwhelming support from the participants, stated that “a max supply cap, and also incentives for an even smaller effective circulating supply better reflect the value, community, and sustainability” of the application.
“We propose a maximum supply cap of 750 Million (750M) for CAKE, and will introduce revised tokenomics for locked CAKE, such as bringing boosted IFO benefits and farm yields to our users”
The current circulating supply of CAKE stood at a little over 294 million. Assuming there are no changes in terms of its ongoing rate of emission, the circulating supply would take nearly three years to reach the cap.
Besides reducing the total supply of the token, the proposal also outlines introducing additional utility and incentives to users to lock their CAKE.
This includes adding value to the Pancake staking system via vCake, bCake, and iCake, which are being developed to ramp up farming rewards, foster IFO benefits as well as increase governance voting capabilities.
The main idea is to effectively reduce the circulating supply of CAKE.
Amidst the crypto blood bath, the DeFi token also took a beating. CAKE was down by more than 10% over the past day. At the time of writing, it was trading at $4.05.