- PancakeSwap (DEX) is a decentralized trading platform built on BNB Chain.
- Over the past seven days, PancakeSwap has fallen by 21%.
- The DEX’s core team introduced a proposal to reduce the token’s inflation rate to 3-5%.
PancakeSwap’s native token, CAKE, has declined by about 21% in the last seven days and 27% in the last 14 days despite PancakeSwap’s core team introducing a proposal to reduce the token’s inflation rate to 3-5% from the current rates above 20%.
The CAKE token, however, was expected to rise on the back of the inflation-reducing proposal. In fact, as more stakers leave the market, the token’s value has dropped.
CAKE traded at $2.66 as of press time, an increase of 1.6% in the last 24 hour.
Reducing PancakeSwap token inflation rate
PancakeSwap recently forked Uniswap V3’s code and launched its version on Aptos and Ethereum. The project’s core team has also introduced a proposal to reduce the native token’s inflation rate to 3-5% from the current rates above 20%.
If the proposal is approved, the amount of tokens earned by stakers will be reduced. This may have been the cause of the recent exodus amongst PancakeSwap stakers.
But why should the team suggest a proposal that is detrimental to the project’s ecosystem? This is what the proposal says:
“Current inflation rates are unsustainable for CAKE over the long term, and reductions are required for the long-term health of PancakeSwap.”
Voting on the proposal It is expected to finish today, April 28, after having started on April 26. According to the data, so far the community has overwhelmingly supported the proposal. 55.43% of voters have supported the proposal, while only 8.10% have opposed it. However, the voting process is not closed.
