Altcoin: The token of altcoin project PancakeSwap (CAKE) has been trading under massive selling pressure for the past few weeks. However, the decentralized exchange has come up with a new emission reduction proposal that has sparked excitement among the community. After the bid, the altcoin price rose.
- 1 Altcoin price surged due to news
- 2 Bid aims to burn 11% per block
- 3 What is PancakeSwap (CAKE)?
- 4 Share this:
Altcoin price surged due to news
In the proposal, PancakeSwap stated that it has been a long time since the last CAKE emission reduction. However, he also noted that this is one of the most talked about topics in the community. He also added that their goal is to make CAKE emission neutral or deflationary. This means that the average amount of tokens burned per block will be higher than the amount minted.
AmkNews.com As we reported, after the announcement, CAKE prices increased by over 7%. The CAKE token is trading at an average price of $3.22 at press time. The 24-hour trading volume of the altcoin project is at $74.9 million. PancakeSwap has a market cap of approximately $490 million and is ranked 73rd in the market. However, it has gained about 30% in the last 30 days.
The proposal highlights that the emission per block has already dropped from 40 CAKE per block to just 14.25 per block. He also adds that they are burning an increasing number of tokens each week, which includes trading fees. However, net emissions per block after incineration have stood at 11 CAKEs per block over the past few months.
Bid aims to burn 11% per block
According to the details, it is possible for people to vote to reduce duties assigned to farms by up to 11%. By the way, we have to state that the voting will take 2 days.
According to the proposal, holders will have to choose between three options. The first option will be “No change”. The second will be to burn 0.25 CAKE per block, which is 5.88% of that. The final choice will be to burn 0.50 tokens, which is 11.76% per block.
To win the vote, the option must have a 50% + majority. However, if neither election wins the required majority, a new proposal will be announced.
What is PancakeSwap (CAKE)?
PancakeSwap is an automated market maker (AMM). A decentralized finance (DeFi) application that allows users to exchange tokens, provide liquidity through farming, and receive fees in return.
The altcoin entered the market in September 2020. A decentralized exchange for exchanging BEP20 tokens on BBNB Chain. PancakeSwap uses an automated market maker model where users trade against a liquidity pool. These pools are populated by users who deposit their funds into the pool and receive liquidity provider (LP) tokens in return.
It is possible that these tokens can then be used to reclaim their share of the pool and some of the transaction fees. These LP tokens are known as FLIP. PancakeSwap also allows users to collect additional tokens such as CAKE and SYRUP. On the farm, it is possible for users to deposit LP tokens and receive CAK rewards.
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