PancakeSwap aims to drastically reduce CAKE supply

The decentralized crypto exchange PancakeSwap wants to drastically reduce its maximum token stock. As the development team explained in a blog post writes, the maximum supply should be 450 million CAKE. Previously, the supply limit was 750 million.

The community rejoiced: after all, investors expected positive price reactions from the supply reduction. In fact, this has already happened: Within 24 hours, CAKE was up 13.2 percent, but after this it also fell 8 percent. At the time of writing, the price is $2.49.

In the blog post, the authors write, "The reduction in token supply is a crucial step to achieve "Ultrasound CAKE" and send a clear signal for PancakeSwap's move away from a hyperinflationary tokenomics model." However, since the all-time high of $42.46 in May 2021, the CAKE price has fallen 94 percent.