PancakeSwap, the Binance Smart Chain-based decentralised finance (DeFi) programme known for its automated market maker (AMM) service and funny branding, has submitted a governance proposal for the second iteration of its tokenomics roadmap.
The updated version of the lite paper’s centrepiece requested that the project’s native token, PancakeSwap, be subjected to a supply cap (CAKE). According to quantitative data validated by CoinMarketCap, the paper suggested a maximum circulating supply of 750 million for the coin, which is currently at 293.4 million.
The community was given a 24-hour governance voting session, which received 11,008,360.64 CAKE votes, with an overwhelming majority of 98.80% of voters supporting the proposal’s acceptance.
“There is no cap on individual voting rights,” the team disclosed, adding that “it depends on how much CAKE they have locked.”
The team rated the snapshot’s ultimate result as a huge success, with plans to implement the modifications soon.
PancakeSwap’s business developer talks about why they chose a three-year timeframe for the token’s supply span
Chef Icy, PancakeSwap’s business developer, jokes that he’s four-quarters bunny, one-quarter robot, and talked about why they chose a three-year timeframe for the token’s supply span, as well as their quantitative objectives for the CAKE token and PancakeSwap’s community influence during that time:
“First, the three-year runway is based on 14.25 CAKE-per-block figures, so it’s a fairly conservative estimate. Due to the additional fires caused by our weekly burning, our effective CAKE emissions are around 10.5 CAKE per block (trading fee burns, etc.). Our effective runway will be 4.2 years, assuming a 10.5CAKE per block.”
Close competitors Uniswap, TraderJoe, and SushiSwap, with 2.5 year, 1.75 year, and 1.5-year runways, respectively, acknowledge that this conservative estimate for a tree-year runway — referring to the timespan expected until the maximum supply is met and completely circulating in the market — would surpass them.
Along with the supply cap proposal, three new utilities are intended to produce value within the staking ecosystem: vCAKE to improve governance voting processes, iCAKE to promote IFO benefits, and bCAKE to increase farming rewards.
Icy revealed more about how the introduction of vCAKE, iCAKE, and bCAKE could impact CAKE stakers, especially their annual percentage yield (APY) options, promising to “continue to introduce innovative DeFi practises to our platform and users that are battle-tested,” citing last month’s introduction of -ve and POL in the decentralised finance (DeFi) sector.
“It has an influence on stakers because locked CAKE gains greater value. The APY Model will not change because the locked CAKE pool’s APY will continue to be calculated using our present methodology. The potential benefits, however, should increase as users are able to extract more value from their locked CAKE.”
On Thursday, PancakeSwap will host an AMA Twitter Space to allow the community to interact with them and ask questions about their current advances.