The number of CAKE tokens per block sent to PancakeSwap’s syrup pool will be reduced.
PancakeSwap community votes for more deflation
With a 56.83% dominance, PancakeSwap, the leading decentralized finance (DeFi) protocol on BNB Chain, aimed to reduce CAKE emissions in a recent proposal to its community members. The CAKE emission reduction proposal aimed to reduce token emissions in the protocol’s syrup pool.
Simply put, “issuance” refers to the rate at which tokens of a crypto asset are created or distributed.
Under PancakeSwap’s previous tokenomics, 40 new CAKE tokens were issued per block. Of these, 10 CAKE tokens were sent to his syrup pool and 3.75 CAKE to his farms. The rest was burned. With the new proposal, PanCakeSwap’s goal was to reduce the number of CAKE tokens sent to its syrup pools by either 2.5%, 5%, or 10%.
Speaking about the aim of the proposal, boss Icy told BSC News:
“Ultimately, we are aiming for emissions neutral or even deflationary, so better reduction in emissions per block will help achieve that. We’ve already reduced emissions through other methods (e.g. reduced farm rewards by 87.5%) and increased burn (increase trading fee CAKE buyback-and-burns), so it’s crucial that we reduce emissions in can reduce the pool.”source
The proposal to reduce its emissions was mainly driven by the protocol’s desire to pursue a sustainable growth model, away from its “growth at any cost”. By reducing emissions, PancakeSwap is trying to ensure the supply of CAKE tokens is under control while its organic adoption in the DeFi space grows.
Boss Icy confirmed that the proposed reduction will result in a lower APR/APY for its users, adding:
“Yes, they would get a lower APR/APY. But the benefit they get from having a less inflationary token outweighs the drop in APY.”
At the close of the voting period on August 11, 75.97% of the total votes cast supported a 10% reduction in CAKE emissions into the protocol’s syrup pool.
source
What is PancakeSwap:
PancakeSwap is a decentralized exchange (DEX) built on top of the BNB chain. It offers users various features like Liquidity Pools, Swaps, Yield Farming, Syrup Pools, Automated Market Maker, Initial Farm Offering (IFO), NFT Profile System and many others.
Additionally, the protocol helps users get the most out of their crypto assets by trading, earning through yield farming, and winning via lottery, prediction, and NFT collectibles. With the highest trading volume in the market, PancakeSwap is the leading DEX on the BNB chain.
Where to find PancakeSwap:
Website | Twitter | Medium | GitHub
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