PancakeSwap Proposed A Plan To Curb CAKE’s Inflation To 3-5%

PancakeSwap is a decentralized exchange (DEX) that runs on BNB Chain, and recently expand to Ethereum and Aptos. It allows users to swap tokens, provide liquidity, stake and earn rewards, and participate in lotteries and governance. PancakeSwap also has its own native token called CAKE.

PancakeSwap has $2.3 billion in TVL. Its marketcap is $637,634,216 and ranks 76^th largest crypto by market cap.

In a blog post, PancakeSwap developers proposed a target inflation rate of 3-5%. Current CAKE’s inflation rate is 22-23% which translate to issuance of 9.2 CAKE per block. 3-5% inflation will reduce net issuance to 2.9 CAKE per block.

PancakeSwap also want to make CAKE deflationary through CAKE burn. Developers plan to use a portion of trading fees to buyback and burn CAKE.

This proposal called CAKE Tokenomics v2.5. The proposal is waiting for the PancakeSwap community vote to pass.

Last year, PancakeSwap community voted to cap CAKE at 750 million. Currently 185,155,279 (25%) of CAKE are circulating the market.