- PancakeSwap, the Defi application built on Binance Smart Chain has released a governance proposal for the second iteration of its tokenomics roadmap.
- The midpoint of the new litepaper recommended a stock limit on the project’s original token, CAKE.
- Currently operating with a circulating supply of 293.4 million, CoinMarketCap reports, the paper advised a maximum figure of 750 million.
PancakeSwap, a decentralized financial (DeFi) app built on Binance Smart Chain that is known for its automated market maker service and distinctive branding, has published a governance plan for the second iteration of its tokenomics road map. Since its inception, the PancakeSwap team’s snap decision has received over 11 million CAKE votes, with most participants favoring the v2 evolution.
PancakeSwap team proposes CAKE limit supply to 750 million
PancakeSwap announced the news in a blog post on Thursday, explaining that the midpoint of the new litepaper recommended a stock limit on the project’s original token, CAKE. For a 24-hour period, the public was allowed to participate in a governance voting window, and 11,008,360.64 CAKE votes were cast, with an overwhelming majority of 98.80% of respondents supporting the proposal’s admittance.
According to the team, there is “no limit on individual voting rights” and that “it’s dependent on how much CAKE they’ve locked.”
Overall, the team was pleased with the result of the snapshot as they stated their intentions to put them into action soon.
Crypto news reporters reached out to Chef Icy, the company developer of PancakeSwap, to learn more about their decision to pick a 3-year runaway for the tokens supply span and their quantitative goals for the CAKE token, as well as how well the community impact of PancakeSwap will benefit over time. He was quoted:
First, the 3-year runway is a very conservative estimate based on 14.25 CAKE/block calculations. In fact, our effective CAKE emission is about 10.5 CAKE/block, due to the extra burns caused by our weekly burns (trade cost burns, etc.). Based on a 10.5CAKE/block, our effective runway will be 4.2 years.
The team, or rather the chefs in the kitchen, understands that this conservative estimate for a three-year runway – referring to the estimated time until maximum supply is reached and fully circulated in the market – is Uniswap’s closest competitors by two-and-a-half years, TraderJoe and SushiSwap by one year and one month, and PancakeSwap itself by a mere six months.
In essence, what the team is saying is that their roadmap planning is much more humble and risk-averse in comparison to their rivals, which gives them a considerable competitive advantage – one could say they are playing the long game.
It is also worth noting that the CAKE token itself has a number of use cases on the PancakeSwap platform that goes beyond just being a utility token for transaction fees. These include staking for SYRUP (PancakeSwap’s governance token), providing liquidity, and participating in lottery and games.
Thus, it seems as though PancakeSwap has big plans for its CAKE token and the wider community can expect exciting things to come from the project in the near future.
PancakeSwap is currently the sixth-largest decentralized exchange (DEX) by total value locked (TVL), with $1.32 billion worth of digital assets secured in smart contracts, according to data from DeFi Pulse.
Related news: Opera browser to allow access to exciting BNB chain-based DApp protocol
Opera has adopted BNB Chain, a decentralized blockchain system previously known as Binance Smart Chain, to allow BNB Chain-based decentralized apps on Android, iOS, and Windows PC versions of its Crypto Browser. The move will enable users to access Binance DEX, the decentralized exchange developed by the world’s largest cryptocurrency exchange, as well as other dApps built on Binance’s native blockchain.
The merger will allow Opera’s 350 million users to purchase the BNB token with fiat, trade it through its built-in cryptocurrency wallet, and connect DApps directly via the BNB Chain protocol.
To continue to develop innovative DeFi methods on our platform, as well as battle-tested users, Icy promised to “introduce new practices,” including -ve and POL to the sector last month. More information about how introducing vCAKE, iCAKE, and bCAKE might affect CAKE strikers, particularly their annual percentage yield (APY)options. In conclusion, PancakeSwap will have an Ask Me Anything (AMA) session on May 12 on Twitter to allow the community to participate and ask questions about their most recent progress.