PancakeSwap governance proposal set to cap CAKE supply at 750M
PancakeSwap, the Binance Smart Chain-based decentralized finance (DeFi) programme known for its automated market maker (AMM) service and unique branding, has issued a governance proposal for the second iteration of its tokenomics roadmap.
The latest version of the lite paper’s centerpiece suggested a supply cap on PancakeSwap, the project’s native coin (CAKE). The report suggested a maximum figure of 750 million, based on quantitative data validated by CoinMarketCap. The coin now has a circulating supply of 293.4 million.
A 24-hour governance voting window was provided to the community, and 11,008,360.64 CAKE votes were cast, with an overwhelming majority of 98.80 percent of voters supporting the proposal’s acceptance.
The team rated the snapshot’s ultimate result as extremely positive, and they stated that they intend to implement the adjustments as soon as possible.
Cointelegraph spoke with PancakeSwap’s business developer, Chef Icy — who describes himself as “four quarters bunny, one quarter robot” — to learn more about their decision to choose a three-year runaway for the token’s supply span, as well as their quantitative ambitions for the CAKE token and PancakeSwap’s community impact over that time period:
“First, the three-year runway is based on 14.25 CAKE-per-block projections, which is a highly cautious estimate. Due to the additional fires caused by our weekly burning, our effective CAKE emissions are roughly 10.5 CAKE per block (trading fee burns, etc.). Our effective runway will be 4.2 years based on a 10.5CAKE per block.”
Close competitors Uniswap, TraderJoe, and SushiSwap, with 2.5 year, 1.75 year, and 1.5 year runways, respectively, acknowledge that this conservative estimate for a three-year runway — referring to the timespan expected until the maximum supply is met and completely circulating in the market — would surpass them.