CAKE, the native token of decentralized exchange (DEX) PancakeSwap, is up by almost 7%, following a proposal to reduce its maximum token supply.
According to data from CoinGecko, PancakeSwap's CAKE is currently trading at $3.77, up 6.8% on the the day and 40% in the last seven days.
The proposal to slash the maximum supply of CAKE by 300 million to 450 million has garnered widespread support from the community of token holders, with over 90% voting in favor so far.
The voting proposal went live Thursday morning, and will continue until December 29.
According to the proposal, the DEX's "Kitchen," made up of its lead developers, or "chefs," will offer "certainty to the community" on the future token supply of CAKE. The team said that following PancakeSwap's 2021 launch, there was "significant token inflation" in order to bootstap the DEX's ecosystem.
"After almost 3 years in development, we now have more accurate estimations of incentives required to achieve our growth targets," they added, noting that the move would represent a "pivot away from a hyperinflationary tokenomics model."
Despite its overnight jump, CAKE has a long way to go before it can reclaim its all-time high of nearly $44, posted in April 2021.
The move caps off a busy few months for PancakeSwap; in August 2023, it expanded to the Coinbase-incubated Base layer-2 network, and Ethereum layer-2 scaling network Linea, as part of an ongoing multi-chain expansion by the PancakeSwap team.
Last month, the DEX launched its own crypto gaming marketplace with tower defense game Pancake Protectors and city-building sim Pancake Mayors as the launch titles.
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Source: Decrypt.co
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