While PancakeSwap is known as one of the popular automatic market makers in the cryptocurrency world, a recent important offer from its community attracted attention. The community has submitted a proposal that aims to reduce the total supply of the project’s native token, CAKE, by approximately 40 percent. If this offer is accepted, CAKE’s total supply will be reduced from 750 million to 450 million.
This proposal within the PancakeSwap community encouraged community participation on the future and sustainable growth of the project. The proposal, which found wide support in the voting among community members, also showed what kind of democratic process was followed in important decisions taken together with PancakeSwap’s community.
According to the protocol, the supply cut will prevent Pancake Swap from being an inflationary model while preserving its future growth. It was also stated that 450 million CAKE, defined as the new total supply in the proposal, would be sufficient for all future activities.
The proposal to reduce CAKE’s total supply aims to bring sustainable growth to the PancakeSwap ecosystem. Having less supply could potentially increase the value of the altcoin by balancing demand and supply. Additionally, such strategic decisions taken by the community preserve and strengthen the decentralized and community-driven nature of the project.
On the other hand, this strategic move by PancakeSwap emphasizes the importance of community participation in crypto projects. Such democratic decisions in the altcoin space show that projects are shaped not only by developer teams, but also by community members. This may be a reflection of a broader trend of democratization and participation in the cryptocurrency industry.
Altcoin CAKE has gained nearly 50% since its price of $2.40 on December 22. Investors believe that this strategy adopted by the community can strengthen CAKE’s long-term value potential by increasing its market capitalization.
You can follow the current price movement here.