BTC

$90408.714

0.71%

ETH

$3152.792

2.69%

BNB

$616.368

-0.18%

XRP

$1.122

5.01%

DeFi

70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes

April 27, 2023 - Around 3 mins mins to read

Key Points:

  • According to PancakeSwap DAO, 70% of the CAKE-holding community voted in favor of curbing inflation and lowering block rewards.
  • The DAO proposes reducing the number of tokens stakeholders get as interest for storing their coins.
  • The PancakeSwap community opted for an “aggressive reduction” in staking incentives this week, causing the CAKE token to fall in value.
The community that governs PancakeSwap, a major decentralized trading venue that runs atop Binance’s BNB Chain, is considering a proposal to reduce staking rewards by slashing CAKE block emissions.
70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes
70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes 4

A community vote to reduce CAKE block rewards emitted by the decentralized-finance protocol PancakeSwap is nearing completion, with nearly 70% of votes of the decentralized autonomous organization, or DAO, in favor of an “aggressive reduction.” The vote will end at 15:30 UTC on Friday.

CAKE emissions on PancakeSwap’s main liquidity pool would drop by 94% once the proposal is voted in. Core developers published a proposal to this effect, and voting kicked off earlier this week, although members of the protocols DAO started debating the proposal in early April. The proposal aims to cut down CAKE’s interest to around 3-5%. The current rate above 20% was deemed “unsustainable” by some community members.

The team behind PancakeSwap carefully considered the dialogue surrounding the unsustainable inflation rate of CAKE that required the token to see higher adoption and capital inflow for stakers to earn higher yields. A proposal to aggressively reduce inflation and transform CAKE’s tokenomics to generate higher real yield and favor long-term CAKE stakers was put forward.

To achieve this, the core team will change CAKE emissions from 6.65 CAKE per block to 3 CAKE per block if the proposal is voted for. 70% of community members already voted in favor of this “aggressive reduction.” Emissions refer to the rate new crypto coins are released or added to the total supply.

The first emission reduction will be immediate. Afterward, developers will slash token emissions by 0.5 CAKE per month. This reduction will happen every month for five months till emissions occur at a 0.35 CAKE per month rate.

At press time, 69.33% of voters were in favor of the proposal, 10.41% agreed to a gradual and not aggressive reduction in inflation, and 20.26% rejected both models.

70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes
70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes 5

On the weekly chart, PancakeSwap’s native asset CAKE declined by over 20%. The dip in CAKE’s price coincides with an exodus of staked tokens and a community vote to tweak tokenomics.

70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes
CAKE price chart. Source: TradingView

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

CAKE

Dex

PancakeSwap

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
DeFi

70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes

Key Points:

  • According to PancakeSwap DAO, 70% of the CAKE-holding community voted in favor of curbing inflation and lowering block rewards.
  • The DAO proposes reducing the number of tokens stakeholders get as interest for storing their coins.
  • The PancakeSwap community opted for an “aggressive reduction” in staking incentives this week, causing the CAKE token to fall in value.
The community that governs PancakeSwap, a major decentralized trading venue that runs atop Binance’s BNB Chain, is considering a proposal to reduce staking rewards by slashing CAKE block emissions.
70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes
70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes 9

A community vote to reduce CAKE block rewards emitted by the decentralized-finance protocol PancakeSwap is nearing completion, with nearly 70% of votes of the decentralized autonomous organization, or DAO, in favor of an “aggressive reduction.” The vote will end at 15:30 UTC on Friday.

CAKE emissions on PancakeSwap’s main liquidity pool would drop by 94% once the proposal is voted in. Core developers published a proposal to this effect, and voting kicked off earlier this week, although members of the protocols DAO started debating the proposal in early April. The proposal aims to cut down CAKE’s interest to around 3-5%. The current rate above 20% was deemed “unsustainable” by some community members.

The team behind PancakeSwap carefully considered the dialogue surrounding the unsustainable inflation rate of CAKE that required the token to see higher adoption and capital inflow for stakers to earn higher yields. A proposal to aggressively reduce inflation and transform CAKE’s tokenomics to generate higher real yield and favor long-term CAKE stakers was put forward.

To achieve this, the core team will change CAKE emissions from 6.65 CAKE per block to 3 CAKE per block if the proposal is voted for. 70% of community members already voted in favor of this “aggressive reduction.” Emissions refer to the rate new crypto coins are released or added to the total supply.

The first emission reduction will be immediate. Afterward, developers will slash token emissions by 0.5 CAKE per month. This reduction will happen every month for five months till emissions occur at a 0.35 CAKE per month rate.

At press time, 69.33% of voters were in favor of the proposal, 10.41% agreed to a gradual and not aggressive reduction in inflation, and 20.26% rejected both models.

70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes
70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes 10

On the weekly chart, PancakeSwap’s native asset CAKE declined by over 20%. The dip in CAKE’s price coincides with an exodus of staked tokens and a community vote to tweak tokenomics.

70% Of The PancakeSwap Community Is In Favor Of Reducing The Stakes
CAKE price chart. Source: TradingView

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News