The PancakeSwap community has approved a proposal to reduce the project’s maximum supply from 750 million to 450 million CAKE. The vote opened on Thursday, December 28 and closed on Friday, December 29 with 97.88% of the total votes in favour.
The move comes as part of PancakeSwap’s overall revamp of its tokenomics, emissions and growth strategy, with the team noting that the reduction in token supply “signifies PancakeSwap’s successful shift from a high-inflation emissions model to the Ultrasound CAKE era.”
Unfortunately, the news has had a negative impact on CAKE price. The token traded around $3.46 per token at 12.40 pm ET on Friday, down 9.5% in the past 24 hours. This is in stark contrast to its peak of $44 in April 2021. With the broader crypto market cap declining 1.7% and Bitcoin (BTC) slipping below $42k, fresh momentum could be needed for CAKE to retest higher resistance levels.
