The PancakeSwap altcoin project (CAKE) token has been trading under enormous selling pressure in recent weeks. However, the decentralized trading presented a new emission reduction proposal that sparked enthusiasm in the community. After the offer, the price of the altcoin rose.
The price of the altcoin rose due to the news
In the proposal, PancakeSwap said that it has been a long time since CAKE’s last emission reduction. However, he also noted that this is one of the most talked about topics in the community. She also added that their goal is to make CAKE emissions neutral or deflationary. This means that the average amount of tokens burned per block will be higher than the amount minted.
cryptocurrency.com As reported, after the announcement, CAKE’s prices increased by more than 7%. The CAKE token is trading at an average price of $ 3.22 at the time of going to press. The 24-hour trading volume of the altcoin project is $ 74.9 million. PancakeSwap has a market cap of approximately $ 490 million and is ranked 73rd in the market. However, it has gained around 30% in the past 30 days.
The proposal highlights that issuance per block has already dropped from 40 CAKE per block to just 14.25 per block. He also adds that they are burning an increasing number of tokens every week, which includes trading fees. However, net emissions per block after incineration have stood at 11 CAKE per block in recent months.
The offer aims to burn 11% per block
According to the details, it is possible to vote to reduce the duties assigned to farms by up to 11%. By the way, we must point out that the vote will last 2 days.
Under the proposal, cardholders will have to choose between three options. The first option will be “No changes”. The second will be burning 0.25 CAKE per block, or 5.88%. The final choice will be to burn 0.50 tokens, or 11.76% per block.
To win the vote, the option must have a majority of 50% +. However, if none of the elections obtain the required majority, a new proposal will be announced.
What is PancakeSwap (CAKE)?
PancakeSwap is an automated market maker (AMM). A decentralized finance (DeFi) application that allows users to trade tokens, provide liquidity through agriculture, and receive commissions in return.
The altcoin entered the market in September 2020. A decentralized exchange for the BEP20 token exchange on BBNB Chain. PancakeSwap uses an automated market maker model where users trade against a liquidity pool. These pools are filled by users who deposit their funds into the pool and receive liquidity provider (LP) tokens in exchange.
These tokens can then be used to recover their share of the pool and some of the transaction fees. These LP tokens are known as FLIPs. PancakeSwap also allows users to collect additional tokens such as CAKE and SYRUP. On the farm, users can deposit LP tokens and receive CAK rewards.
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