New proposal takes a long-term, almost piecemeal approach, to the elephant in the room: CAKE’s low price.
CAKE Emissions Key Topic
The monthly CAKE emissions votes became a hot topic for PancakeSwap users as market challenges and increasing inflationary features have perpetuated a fall in the price of CAKE. The proposals from the CAKE team, sadly appear to be piecemeal in what appears to be a situation in need of a more dynamic approach.
The latest proposals on the 25th came as users on Twitter called for action. The Pancake team presented three options on Nov. 25th: no change; 0.1 CAKE per block (0.22%) reduction to farm rewards; or a 0.25 CAKE per block (0.56%) reduction to farm rewards. The third option held 54% of the vote when voting ended at 02:00 UTC, Nov. 26th. Any CAKE holder was able to vote for free.
“0.25 is not enought imo.. we need higher reduction and some more pumpamentals, otherwise people would leave with their liquidity anyway,” tweeted @wolfbiz69. “[B]ecause they would be farming at high APR but considering the price it would be a worthless token.. 60% APR on token that looses 70% in price..”
The CAKE token has been on a steady decline the last three months, dropping over 50% from $26 down to $12, at the time of writing. With nearly 1,00,000 holders, CAKE’s fall is felt by many Binance Smart Chain users. As the largest decentralized exchange on the platform, it’s imperative CAKE finds more utility and a pathway to being fully deflationary. The winning proposal of 0.25 CAKE does not feel like enough.
“Earlier it’s performing with BNB but now is not going with BNB it’s a bad signal. Pancake team should think about this. Earlier when BNB was $600 that time Cake was $44 and now BNB is again $600 but where we are $15,” tweeted @lalittalan on Nov. 22.
The last tweet received 58 likes and is food for thought. If CAKE cannot sustain the pace of the chain it runs on, then something has got to give. The new proposal appears to be a long-term approach but further pptions like more chances to use CAKE in transactions or adjustments to the emissions so that the buyback and burn so it are always bigger than the emissions must be considered.
PancakeSwap is a Decentralized Exchange (DEX) built on BSC. It offers users various features such as Liquidity Pools, Swapping, Yield Farming, Syrup Pools, Automated Market Maker, Initial Farm Offering (IFO), NFT profile system, and many others.
In addition, the protocol helps users make the most out of their crypto assets by trading, earning through yield farming, and winning via lottery, prediction, and NFT collectibles. With the highest trading volumes in the market, PancakeSwap is the leading DEX on the BSC.
Source : bsc.news
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