The developers of PancakeSwap, one of the largest decentralized exchange platforms on the BNB Beacon Chain network, have decided to hold an important vote. In this vote, the users of the network are asked to decide on a serious matter. They have to say whether they agree or not with reducing the number of CAKE tokens that are sent to “farms” directly.
A new vote after an old one
The vote launched by the developers of PancakeSwap is intended to reduce the inflation on CAKE tokens, but this is not just a benefit that can be gained from this project if it were to succeed. There is also the fact that it could have a negative effect on the annual interest rate of farms and pools that are related to the CAKE token. In any case, the vote has already started and ends on June 25.
It must be said that regulating inflation is a key aspect for cryptocurrencies. In the case of CAKE, the token had a maximum circulation limit. In order for this limit not to be crossed, users would have to provide cash, and this is what the developers invited them to do. They had to pay regularly their tokens in pools on PancakeSwap.
But the constraint imposed by the network became complicated to manage for many users. That’s why, on May 12, a vote to limit the maximum supply of CAKE to 750 million tokens was launched. By that time, many people had voted “yes”. As a result, the total number of tokens in circulation dropped from 750 million to 307.4 million according to CoinMarketCap.
Recall that PancakeSwap currently has a capitalization of $484 million compared to $5.3 billion to $6.5 billion when the offering was unlimited. With such a large valuation gap, experts believe that despite the great crisis shaking the cryptocurrency market, CAKE has every chance to survive.
PancakeSwaps recently launched a new vote that could determine the future of the CAKE token. In the face of falling prices in the cryptocurrency market, new arrangements could be made. For example, a reduction in the number of CAKE tokens sent to “farm pools” could be considered.
