CAKE down 21% as PancakeSwap mulls slashing staking rewards

• PancakeSwap is a decentralized change (DEX) constructed on the BNB Chain.
• PancakeSwap (CAKE) has dropped by 21% over the past seven days.
• The DEX’s core crew launched a proposal to cut back the token’s inflation charge to 3-5%.

PancakeSwap’s native token, CAKE, has declined by about 21% within the final seven days and 27% within the final 14 days regardless of PancakeSwap’s core crew introducing a proposal to cut back the token’s inflation charge to 3-5% from the present charges above 20%.

Whereas the crypto market suffered from the latest bear market throughout the board, the CAKE token was anticipated to journey on the proposed inflation-reducing proposal somewhat than drop. Quite the opposite, the token has been dropping as stakers transfer out in numbers.

At press time, CAKE was buying and selling at $2.66, up 1.6% over the past 24 hours.

Decreasing PancakeSwap token inflation charge

PancakeSwap not too long ago forked Uniswap V3’s code and launched its model on Aptos and Ethereum. The mission’s core crew has additionally launched a proposal to cut back the native token’s inflation charge to 3-5% from the present charges above 20%.

If the proposal is handed, it should see the quantity of tokens that stakers earn lowered one thing that could possibly be the rationale behind the latest exodus of stakers from PancakeSwap.

However why ought to the crew counsel a proposal that’s detrimental to the mission’s ecosystem? Nicely, the proposal reads:

“Present inflation charges are unsustainable for CAKE over the long run, and reductions are required for the long-term well being of PancakeSwap.”

Voting on the proposal already started on April 26 and it’s scheduled to finish as we speak April 28. To date, the numbers present that the group is in assist of the aggressive proposal. 55.43% have voted for the proposal in comparison with solely 8.10% who’ve voted in opposition to the proposal though the voting course of remains to be open.