The community of PancakeSwap is proposing to make the CAKE token deflationary through reducing the staking allocation per block, and promoting longer staking of CAKE to earn bigger portions of the trading fees. The voting period to make the token scarce is set to close on April 21. This proposal is to better secure the long-term benefits of the CAKE token, but amidst the bearish market, the token prices have yet to see an uptrend.

PancakeSwap's CAKE token has been under immense pressure in recent times, with prices hitting March 2023 lows and currently trading below the $3.45 support line. Despite the stagnation, the Uniswap rival remains the dominant decentralized exchange running on the Binance Smart Chain (BSC) ecosystem. However, data from DeFiLlama shows that Uniswap boasts a higher total value locked (TVL) of $4.29 billion, amounting to over two billion more than PancakeSwap.

Furthermore, the community of PancakeSwap has decided to make CAKE deflationary through reducing the staking allocation per block, and incentivizing longer-term staking of CAKE. The proposal is to introduce an annual inflation rate of 3% - 5% to secure the long-term benefits of the token, allowing CAKE holders to earn a bigger share of the platform's revenue. As of writing, the voting period to make the token scarce has seen 63% of voters in favor of the proposal. The community will have to wait and see whether these measures are enough to see an uptrend of prices or not.



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