The community for PancakeSwap, the leading DeFi protocol on BNB Chain, has backed the project's latest bid to do away with inflationary tokenomics.
On Dec. 29, tokenholders passed a proposal to reduce the maximum supply of CAKE tokens by 40% from 750M to 450M with more than 97% support.
The proposal said the measure will facilitate PancakeSwap's CAKE token becoming deflationary – meaning more tokens are removed from supply through the PancakeSwap's burn mechanism than enter circulation as newly minted rewards for users. The move follows PancakeSwap adopting Vote Escrow (VE) tokenomics in late November, allowing stakers to vote on how CAKE rewards are distributed across the protocol in exchange for locking up their tokens.
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#undefined [Source: TheDefiant]