BNB Chain’s leading protocol is taking its role as the ‘vanguard of DeFi’ very seriously as they prepare to introduce a set of sweeping changes that Better reflect the DApp’s long-term visions.
V2 Tokenomics Tweak
Alongside the capping of $CAKE’s supply, the token will retain most of its use-cases and also see additional use-cases for locked $CAKE derivatives like weighted voting, boosted farm yields, boosted IFO allocations and even more still to come. The platform is focusing on the future and assuming there are no changes to the rate of emissions, a supply cap of 750 million sets forth an approximate runway of a minimum of three years before the supply reaches this cap.
“We believe that having a max supply cap, and also incentives for an even smaller effective circulating supply better reflects the value, community, and sustainability of PancakeSwap,” the team exclusively revealed to BSC News.
The team carried out a great deal of research before arriving at their 750 million cap and took into account best practices in the industry, their runway and valuation of what is to come in the near future. With the state of the market currently enduring a painful pull-back, the protocol is introducing changes that may offer stability for years to come.
The initial proposal was overwhelmingly approved by the vast majority of participants. The team has explained that it sees its role in DeFi as significant and is hoping to offer users as much information as possible before these changes are implemented.
When we consider the tokenomics of competing Decentralized Exchanges (DEXes) like Uniswap which has a maximum supply of 1 billion or Trader Joe with a maximum supply of 500 million, PancakeSwap’s off ramp period of a three-year minimum is longer and thus more reliable for long-term users. Calculations that highlight the aforementioned period can be viewed beneath.
Overview of Calculations
Current Cake Supply: 290M $CAKE
Number of Blocks per Year: 10.5M Blocks
Number of CAKE Emitted per Year: 10.5M Blocks x 14.25* CAKE/block ≈ 150M $CAKE / year
3 Year Runway
Current Cake Supply + 3 Years Worth of Cake Emissions
290M $CAKE + (3 x 150M $CAKE)
740M CAKE ≈ 750M CAKE
What is PancakeSwap:
PancakeSwap is a Decentralized Exchange (DEX) built on BNB Chain. It offers users various features such as Liquidity Pools, Swapping, Yield Farming, Perpetuals Trading, 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 BNB Chain.
Where to find PancakeSwap:
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.