CakeDAO (CAKE) Price Prediction

The Pancakeswap team told its community via Twitter on Tuesday that it has burned 8,159,935 CAKE tokens (worth $14 million) this week. The decentralized exchange generated $230,000 (131k CAKE tokens) in trading fees for its V2 Swap and Perpetual market, down by 54% from the previous week. Pancakeswap also generated 74k CAKE ($131k) for V3. The Predictions and Lottery markets generated 126k CAKE ($221k) and 39k CAKE ($68k), respectively. The NFT marketplace generated 1k CAKE ($2k), up by 7% from last week.PancakeSwap is a BNB Chain-based decentralized exchange (DEX) with an automated market maker (AMM) model for swapping BEP-20 tokens. CAKE is down by 1% today and is currently trading at $1.715.

Key Points:According to PancakeSwap DAO, 70% of the CAKE-holding community voted in favor of curbing inflation and lowering block rewards.The DAO proposes reducing the number of tokens stakeholders get as interest for storing their coins.The PancakeSwap community opted for an “aggressive reduction” in staking incentives this week, causing the CAKE token to fall in value.The community that governs PancakeSwap, a major decentralized trading venue that runs atop Binance’s BNB Chain, is considering a proposal to reduce staking rewards by slashing CAKE block emissions.A community vote to reduce CAKE block rewards emitted by the decentralized-finance protocol PancakeSwap is nearing completion, with nearly 70% of votes of the decentralized autonomous organization, or DAO, in favor of an “aggressive reduction.” The vote will end at 15:30 UTC on Friday.CAKE emissions on PancakeSwap’s main liquidity pool would drop by 94% once the proposal is voted in. Core developers published a proposal to this effect, and voting kicked off earlier this week, although members of the protocols DAO started debating the proposal in early April. The proposal aims to cut down CAKE’s interest to around 3-5%. The current rate above 20% was deemed “unsustainable” by some community members.The team behind PancakeSwap carefully considered the dialogue surrounding the unsustainable inflation rate of CAKE that required the token to see higher adoption and capital inflow for stakers to earn higher yields. A proposal to aggressively reduce inflation and transform CAKE’s tokenomics to generate higher real yield and favor long-term CAKE stakers was put forward.To achieve this, the core team will change CAKE emissions from 6.65 CAKE per block to 3 CAKE per block if the proposal is voted for. 70% of community members already voted in favor of this “aggressive reduction.” Emissions refer to the rate new crypto coins are released or added to the total supply.The first emission reduction will be immediate. Afterward, developers will slash token emissions by 0.5 CAKE per month. This reduction will happen every month for five months till emissions occur at a 0.35 CAKE per month rate.At press time, 69.33% of voters were in favor of the proposal, 10.41% agreed to a gradual and not aggressive reduction in inflation, and 20.26% rejected both models.On the weekly chart, PancakeSwap’s native asset CAKE declined by over 20%. The dip in CAKE’s price coincides with an exodus of staked tokens and a community vote to tweak tokenomics.CAKE price chart. Source: TradingViewDISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuHaroldCoincu News

Key Points:PancakeSwap proposes changes to CAKE tokenomics towards a deflationary model based on real yield and burn.PancakeSwap recommends 0.35-1 CAKE/block for the Syrup Pool to benefit existing holders and stakers.Trading fees are the most significant driver of CAKE burn and incentivize users to hold onto CAKE.PancakeSwap aims to transition CAKE tokenomics to 5% annual inflation rate, real yield, burn, and product benefits favoring long-term stakers. Trading fees drive CAKE burn.PancakeSwap is proposing changes to the CAKE tokenomics in order to transition towards a deflationary model based on real yield and CAKE burn. They aim to target a 3-5% annual inflation rate for CAKE and propose a model with low staking inflation and real yield drawn from PancakeSwap’s protocol revenues.They also plan to allocate 5% of trading fees from PancakeSwap v3 0.01% and 0.05% fee tiers monthly to CAKE stakers and increase CAKE emission weighting towards longer-term stakers. Longer CAKE stakers will be allocated more benefits across products, with longer stakers receiving higher benefits.PancakeSwap has mapped out the impact of their proposed changes on their journey to ultrasound CAKE, on Syrup Pool APRs, and CAKE Inflation % based on the voting options. They recommend 0.35-1 CAKE/block for the Syrup Pool because it will immediately benefit existing CAKE holders and stakers, and loyal CAKE stakers will receive the largest share of protocol revenue.They believe their proposal will align with PancakeSwap’s growth as a Top 3 DEX and that CAKE has strong utilities other than staking rewards. They do not recommend 2 CAKE/block or higher for the Syrup Pool because it remains highly inflationary to existing CAKE holders and stakers.The most significant driver of CAKE burn comes from trading fees, and the subsequent CAKE buyback-and-burn incentivizes users to hold onto CAKE. PancakeSwap aims to create more value for users and drive the long-term success of the CAKE token. They plan to introduce three new products and expand to other chains to increase CAKE burn further.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuThanaCoincu News