The decentralized cryptocurrency exchange PancakeSwap’s native token, CAKE, has seen a price surge following overwhelming community support for a proposal to reduce its supply. The trigger for the price increase was the initiation of the voting process on a proposal to decrease the supply of CAKE by 300 million tokens.
PancakeSwap, governed by a decentralized autonomous organization (DAO), had proposed to reduce the maximum supply of CAKE from 750 million to 450 million. The voting period for this proposal started early today and will continue until 11:00 AM tomorrow.
So far, over 70,000 votes have been cast in the poll, with more than 99.95% of CAKE holders in favor. If the proposal is accepted, the reduction in CAKE’s supply from 750 million to 450 million will be implemented by January 4, 2024.
A member of the PancakeSwap team commented to Coindesk that reducing CAKE’s supply would positively impact the project and position it for sustained growth in all distributions.
Meanwhile, PancakeSwap’s President, Chef Mochi, conveyed through Telegram that with the current circulating supply of 388 million CAKE, the team believes this new lower cap will be sufficient to gain market share across all chains and sustain CAKE’s model.
Following the proposal to reduce the supply and the high support it received, CAKE’s price began to rise. PancakeSwap’s native asset is currently trading at $3.73, up 7.38% in the last 24 hours.