Revolutionary Move: PancakeSwap Aims to Set New Standard in Token Inflation with 3-5% Cap per Year
PancakeSwap, a decentralized exchange (DEX), has proposed to significantly lower its token inflation rate to between 3% and 5% per annum, in contrast to the current rates of over 20%. The DEX has released a proposal that outlines the transition of CAKE into a staking model with low staking inflation and real yield drawn from PancakeSwap's protocol revenues. This model will offer product benefits favoring longer-term CAKE stakers. The current high-token-emission model incentivizes high yields for liquidity pools and farm offerings, as well as removing tokens from circulation via high staking yields. Developers have gradually reduced the net emission rate of CAKE from its inception in September 2020, aiming to implement "ultrasound CAKE" with a net emission rate of lower than 2 CAKE per block. PancakeSwap is one of the most popular DEXs on BNB Chain and has introduced a supply cap of 750 million for CAKE. Currently, there are around 381.6 million tokens in circulation or locked in staking while the total value locked amounts to $2.35 billion. The DEX welcomes tokenholders to vote on appropriate changes and provide feedback on the proposal.