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