- PancakeSwap DAO has noted 70% of the CAKE holder community voting in favor of controlling inflation and reducing block rewards.
- The proposal is intended to benefit long-term CAKE stakers with a sustainable inflation rate for the token.
- CAKE price has nosedived 5.3% overnight, as holders wait and watch the results of the proposal.
PancakeSwap DAO community members are voting on a proposal to “aggressively reduce inflation” in the token. As of press time, nearly 70% of votes are in favor of the move since it supports long-term CAKE stakers.
CAKE emissions on PancakeSwap’s main liquidity pool would drop by 94% once the proposal is voted in.
Also read: Top 3 cryptos with most active developers: Cardano, Polkadot and Kusama
PancakeSwap DAO community in favor of aggressive reduction in CAKE inflation
The team behind PancakeSwap carefully considered the dialogue surrounding the unsustainable inflation rate of CAKE that required the token to see higher adoption and capital inflow for stakers to earn higher yields. A proposal to aggressively reduce inflation and transform CAKE’s tokenomics to generate higher real yield and favor long-term CAKE stakers was put forward.
At press time, 70.17% of voters were in favor of the proposal, 10.26% agreed to a gradual and not aggressive reduction in inflation and 19.57% rejected both models.
PancakeSwap DAO vote
The proposal states that greater than 50% support for Option 1 or 2 would result in a reduction in CAKE inflation and the benefits associated with CAKE staking would continue for community members.
The response to the PancakeSwap DAO proposal is overwhelmingly positive and the development is likely to act as a bullish catalyst for CAKE price, fueling bullish sentiments among holders. Voting on the proposal ends on April 28, Friday.
What to expect from CAKE price
CAKE recently broke out of its short-term uptrend that started in July 2022 after a definitive close below the trendline as seen in the chart below.
Experts believe CAKE price is close to its buy zone, and technical analyst BlockchainSanta set a buy order for the token at $2.5. The expert recommends scooping up the DeFi token and opening long positions on CAKE, as the token is expected to recover from the recent decline and target closest resistance at $3.2.
CAKE/USDT 1D price chart
The expert is scooping up more CAKE at $2.57, until $2.5, awaiting a recovery in the asset’s price. A decline below support at $2.5 could invalidate the bullish thesis for the DeFi token and make further correction likely.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.