PancakeSwap (CAKE) token has been trading under heavy selling pressure in recent weeks. However, the decentralized exchange has come up with a new emissions reduction proposal that has sparked community excitement.
CAKE price increases by 7%
PancakeSwap mentioned in the proposal that it has been a long time since the last CAKE emissions cut. However, it is one of the most discussed topics in the community. It added that their goal is to make CAKE carbon neutral or deflationary. It means that an average amount of token burned per block will be more than the amount minted.
Since the announcement, PancakeSwap prices have risen more than 7%. CAKE token is trading at an average price of $3.22 at press time. It has a 24-hour trading volume of $74.9 million. PancakeSwap has a market cap of approximately $490 million. However, it has dropped by about 30% in the past 30 days.
The proposal highlighted that emissions per block have already fallen from 40 CAKE per block to just 14.25. It added that they also burn the token with an increased number every week, including trading fees. However, after combustion, the net emission per block has been 11 CAKE per block in recent months.
Proposal aims to burn 11% per block
According to the details, people can vote to reduce missions to farms by up to 11%. Meanwhile, the voting lasts 2 days.
Under the proposal, holders can choose from the three options. The first choice is “No change”. Second, 0.25 CAKE per block will be burned, which is 5.88% of it. The last choice is to burn 0.50 tokens per block, which equates to 11.76%.
It added that the option must have a 50%+ majority to win the vote. However, if none of the choices meets the required majority, a new proposal is announced.
Ashish believes in decentralization and has a keen interest in evolving Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analyses. When he’s not writing, he plays video games, watches a thriller, or works out outside. Reach me at [email protected]
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
This post This is why the price of PancakeSwap (CAKE) could skyrocket
was published first on https://coingape.com/heres-why-pancakeswap-cake-price-can-shoot-up/