Summary
The PancakeSwap team is proposing to reduce the maximum token supply of CAKE from 750 million to 450 million. This proposal has caused the price of CAKE to surge by as much as 20% on Thursday. The team aims to shift towards a more efficient model by decreasing the token supply by 300 million CAKE. PancakeSwap is the top protocol on BNB Chain with $1.4 billion of total value locked. The lead developer, ChefMochi, explained that CAKE operates on a buyback-and-burn model, which can make it deflationary if more CAKE is burned than emitted. PancakeSwap has been reducing the total supply of CAKE for the past three months.
Key Points
1. The PancakeSwap team is proposing to reduce the maximum token supply of CAKE from 750 million to 450 million.
2. The proposal has caused the price of CAKE to surge by as much as 20% on Thursday, reaching its highest level since May.
3. By decreasing the token supply, PancakeSwap aims to signal a shift towards a more efficient flywheel and move away from a high-inflation emissions model.