PancakeSwap (CAKE) token has been trading under big selling pressure over the past few weeks. However, the decentralized exchange has come with a new emission reduction proposal which has spiked excitement among the community.
CAKE price up by 7%
PancakeSwap in the proposal mentioned that it has been a long time since the last CAKE emission reduction. However, it is one of the most talked about subjects in the community. It added that their goal is to make CAKE emission neutral or deflationary. It implies that an average amount of token burnt per block will be more than the minted amount.
Since the announcement, PancakeSwap prices have jumped by over 7%. CAKE token is trading at an average price of $3.22, at the press time. It has a 24 hour trading volume of $74.9 million. PancakeSwap is holding a market cap of around $490 million. However, it has decreased by around 30% over the past 30 days.
The proposal highlighted that the emission per block is already down from 40 CAKE per block to only 14.25. It added that they also burn the token with an increased number every week which includes trading fees also. However, after the burn net emission per block stands at 11 CAKE per block over the past few months.
Proposal aims to burn 11% per block
As per details, people can vote to reduce missions to farms by up to 11%. Meanwhile, the voting will last for 2 days.
As per the proposal, holders can choose among the three options. The first choice will be “No change”. Second will be of burning 0.25 CAKE per block which makes 5.88% of it. The last choice will be burning 0.50 tokens per block which make 11.76%.
It added that the option will need to have a majority of 50%+ in order to win the vote. However, if none of the choices receives the required majority then a new proposal will be announced.