PancakeSwap (CAKE) Rose After Pancakeswap Statement!

PancakeSwap, the giant of the decentralized finance world, announced that they have prepared a new proposal to reduce the supply of its own coin, CAKE. The team aims to significantly reduce the coin supply with this offer. If the offer is accepted, Cake will be burnt. Thus, this altcoin experienced a rise.

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Today, the PancakeSwap team told the community that they have submitted a proposal to reduce the token supply for CAKE. Therefore, the maximum token supply of CAKE will drop from 750 million to 450 million. The team also mentioned their goal of moving away from an inflationary policy before making this proposal.

After this post was shared, the price of CAKE saw an increase of about 20%. This important decision appears to be a significant step for the future of PancakeSwap. Currently, the maximum supply of CAKE is 750 million, and 263 million are in circulation. The sales pressure will be significantly reduced once the proposal is implemented.

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What is PancakeSwap?

PancakeSwap is a decentralized exchange built on Binance Smart Chain (BSC). As with all decentralized exchanges, you can trade tokens without needing a central intermediary and keep custody of your tokens while on PancakeSwap.

The exchange, launched in September 2020, uses an Automated Market Maker (AMM) model which doesn’t require an order book to match you with someone else when you want to trade digital assets on the platform, instead, you transact against a liquidity pool via smart contract.

Although the team behind the exchange is completely anonymous, the platform has been audited by several leading blockchain security firms, including Certik and Slowmist. As the PancakeSwap website and smart contract code are open to public review, the platform is completely open source.