PancakeSwap Reduces CAKE Maximum Supply to 450 Million, Charting a Course for Deflationary Success
Chef’s choice

Dear PancakeSwap Community,

We are excited to share a pivotal moment in the evolution of PancakeSwap's tokenomics. Over the past year, PancakeSwap has been on a transformative journey, refining its strategies and strengthening its position in the decentralized finance (DeFi) space. Today, we are pleased to announce a crucial adjustment to the CAKE token's maximum supply, reducing it from 750 million to 450 million CAKE.

Background and Evolution:

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PancakeSwap has substantially enhanced its tokenomics, emissions, and overall growth strategy. From the introduction of CAKE Tokenomics v2.5 to the recent launch of the veCAKE Gauges System, these initiatives have collectively laid the foundation for sustained growth across all our deployments.

2024-01-04 14.46.26.jpg After achieving consistent deflation in recent months, our latest strategic move is to reduce the CAKE token's total supply to a maximum cap of 450 million CAKE, aligning with our vision for a robust, deflationary model.

Rationale for Adjustment:

1. Certainty for the Community: After nearly three years of development, we now have more accurate estimations of incentives required to achieve our growth targets, providing certainty regarding future CAKE token supply.

2. Accelerating Ultrasound CAKE: Lowering the total supply is crucial in achieving ultrasound CAKE, signaling PancakeSwap's departure from a hyperinflationary tokenomics model.

3. Flexibility for Growth: A new cap of 450 million CAKE ensures sufficient supply for future growth, including market share expansion on Ethereum, Ethereum L2s, and initiatives like position managers.

Community Support and Governance:

Before the official proposal, we initiated a forum discussion, gauging the sentiment of our vibrant community, and the response was overwhelmingly positive. This strong support paved the way for the official proposal, with more than 97% voting in favor of the reduction, leading to the successful implementation of the new CAKE total supply.

Final Adjustment Details:

  • Previous Total Supply: 750,000,000 CAKE
  • Current Total Supply: 450,000,000 CAKE
  • CAKE Total Supply Decrease: -300,000,000 CAKE

We invite you to delve into our most recent Monthly CAKE Burn Report and explore the comprehensive CAKE Tokenomics documentation.

Thank you for being an integral part of PancakeSwap's journey. Together, we’re continuing to build a robust and innovative DeFi ecosystem.


The Chefs

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