The reduction of CAKE issuance has been a recurring theme for the PancakeSwap community. The native protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. token rose 6% this Thursday.
***
- PancakeSwap community votes on governance in the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. proposal.
- They seek to reduce the issuance of CAKE, without affecting liquidity.
- CAKE rose 6% after the news.
The Decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. (DEX) community, PancakeSwap is preparing to vote on a proposal to reduce the emission the speed at which new coins are produced and released. of its greenhouse gas a term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. It is the “fuel” of the Ethereum network. *see Gas Limit and Gas Price. emissions.tokennative CAKE.
The largest decentralized finance protocol on the web BNB Chain (formerly CSB) presented the governance proposal this Thursday. The proposal The aim is to limit issuance and thus reduce inflation of the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. CAKE. At the same time, it will negatively affect the annual interest rate of farms and share funds linked to CAKE.
The ultimate goal of reducing emissions is to make CAKE “emissions neutral” or “deflationary”. This means that, on average, the amount of CAKE burned per block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. will be greater than the amount of CAKE minted.
???? Calling ALL $CAKE Holders!
We have a new emission reduction proposal!
You can vote to reduce $CAKE emissions to farms by up to 11% ????
The vote will last for 2 days as this is a BIG decision for all $CAKE holders.
READ FIRST, and cast your vote:
????https://t.co/B8ppCl06TUpic.twitter.com/WOraBHtDoN– PancakeSwap ???? #BSC (@PancakeSwap) June 23, 2022
The holders of the token CAKE will be able to participate in the voting, which ends next Saturday, June 25.
PancakeSwap: proposal to reduce CAKE emissions
Inflation a general increase in prices and fall in the purchasing value of money. control is an important issue for cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. projects. As explained by U.Today In the case of CAKE itself, the token had a maximum circulation limit, which its developers justified with the need to incentivize users to provide liquidity, a key feature for a DEX.
As a result, the incumbents were forced to regularly pour out their tokens in liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. groups in PancakeSwap to avoid losing a third of the value of their CAKE each year. However, the platform a place to buy, sell and store cryptocurrency addressed this issue in a previous vote.
En mayo, la comunidad de PancakeSwap voted overwhelmingly in favour of imposing a supply limit of 750 million for the token CAKE. At the time, the roadmap a roadmap is a high-level visual summary that helps map out the vision as well as the direction of a specific product. for the native currency currency is a medium of exchange that defines value. also included adding new functionality for users of PancakeSwap bet more CAKE to force a reduction in the circulating supply.
Since then, CAKE’s current supply has dropped from $295 million to $152 million, including the tokens burned weekly, according to a report by CoinDesk and data from Coinmarketcap . The effective CAKE issuance per block has also dropped from 40 CAKE/block to only 14.25 CAKE/block, according to the DEX (decentralized exchange)A peer-to-peer exchange allowing users to trade cryptocurrency without the need for an intermediary. page.
The new vote further strengthens this intention to maintain the offer of the token The protocol’s low native rate with the least possible negative effects on the protocol’s liquidity farms. To keep farms with an APR (annual percentage rate) “ healthy “while promoting liquidity, the team of PancakeSwap proposes the following options:
- No change:
4.25 CAKE per block go to farms
Total Emissions: 14.25 CAKE per block (including syrup tanks) - 0.25 CAKE per block (5.88%) reduction to farm rewards:
4,00 CAKE per block go to Farms
Total emissions: 14.00 CAKE per block (including Syrup Pools) - 0.50 CAKE per block (11.76%) reduction to farm rewards:
3.75 CAKE per block go to Farms
Total Emissions: 13.75 CAKE per block (including syrup tanks)
CAKE reacts positively
One of the options must have more than 50% of the votes in favour in order to move the proposal forward. However, if none of the options has more than 50% of the votes, the team of PancakeSwap says he will create a new proposal.
The previous vote had a positive effect on the price of CAKE. This time, the presentation of the latest governance proposal for the protocol also seems to have a beneficial effect, as the price of CAKE is expected to rise. token ha up more than 6%. in the last 24 hours. CAKE is trading at USD $3.20 amid a slight broader market an area or arena, online or offline, in which commercial dealings are conducted. rally.
More broadly, the price of the native token of PancakeSwap has suffered like much of the cryptocurrency market in recent weeks. CAKE is 92% below its all-time price high above USD $40, recorded in April of last year, as other major cryptocurrencies have been struggling. altcoins also recorded similar percentage losses.
The total locked value (TVL) of the protocol has also plunged amid the price collapse, from USD $7.8 billion to USD $7.8 billion to less than USD $3 billion in a matter of a year.
- Binance Labs invests in DEX PancakeSwap and its utility token CAKE
- PancakeSwap DEX outperformed Kraken in daily trading volume how much cryptocurrency has been traded over a set period, such as the past 24 hours.
- Solana whale a term used to describe investors who have uncommonly large amounts of crypto, especially those with enough funds to manipulate the market. put Solend protocol at risk, but now moves $25 million to fix it
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash
