The Pancake Swap community approved a proposal to reduce the supply of CAKE by 300 million
The Pancake Swap community approved the proposal to remove 300 million KKK from the project's maximum supply. The proposal passed with nearly 98% of the vote. The price of CAKE has dropped significantly over the past 24 hours, hovering around $3.46 and down 9.5%.
The Pancake Swap proposal, which seeks to reduce the decentralized supply of foreign exchange from 750 million to 450 million CAKE, has been passed. Voting on the resolution opened on Thursday, December 28 and closes today, Friday, December 29.
As detailed on the voting page, 97.88% of the total votes passed the proposal, paving the way for CAKE to officially lower the cap to 450 million. Currently, the market's major aggregators CoinGecko and CoinMarketCap show that the total supply is 386,192,564 and the maximum supply is 450 million.
“By reducing our token supply by $300,000,000 CAKE, we confirm that Pancake Swap has transitioned from a hyper-inflationary model to an ultrasonic cake era,” the Pancake Swap team stated.
The move to cut CAKE's top supply adds to the overall overhaul PancakeSwap has taken on Tokonomics, releases and growth strategies.
“From upgrading CAKE Tokenomics v2.5 to launching the veCAKE metrics system, CAKE is poised to continue further growth across all deployments,” the proposal read.
The price of CAKE has been reduced significantly
The price of CAKE has dropped significantly in the last 24 hours, with the volume decreasing since the proposal passed.
CAKE traded at $3.46 per token at 12.40 pm ET on Friday, down 9.5% in the last 24 hours. Despite staying in the green over the past week and month, CAKE has shed its recent gains of 37% and 56% in the two time frames, respectively.
CAKE reached a high of $4.68 in February and is on a decline from its all-time high near $44 reached in April 2021.
Today's altcoin decline came as the broader market fell 1.7% and Bitcoin (BTC) fell below $42k.
Most of the top altcoins were also down at the time of writing. However, with crypto largely in bullish territory, fresh buying CAKE momentum could see the token price test higher resistance levels.
