The majority of voters on PancakeSwap, a decentralised cryptocurrency exchange, embraced the company’s proposal on Thursday to cut the number of CAKE tokens in circulation by 300 million.
There was a vote proposal put forth by PancakeSwap’s decentralised autonomous organisation (DAO) to lower the maximum supply of CAKE from 750 million to 450 million. Early European time on Thursday marked the start of the voting period, which will run until 8:00 am UTC on Friday. In the event that the proposal is approved, the reduction will take effect on January 4, 2024.
Soon after the proposal went live, over 99.95% of the community, or 70,000 votes from CAKE holders, supported it.
A member of the PancakeSwap team wrote to CoinDesk that the project is now “in a position to pursue further growth across all deployments” as a result of the CAKE decrease.
Chef Mochi, the head of PancakeSwap, stated via Telegram that “the team believes this new and lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model” given the 388 million CAKE that are currently in circulation.
According to CoinGecko data, the prices of CAKE tokens have increased by almost 10% in the last day, with the majority of the movement occurring soon after the proposal was floated.