PancakeSwap Makes CAKE Scarcer- 94% Reduction In Staking Rewards!

-PancakeSwap, a leading decentralized exchange (DEX) on the BNB Smart Chain (BSC), has passed the CAKE Tokenomics v2.5 Decision Proposal.
-The proposal aimed to transform the tokenomics model of CAKE by reducing emissions and encouraging longer-term staking.
-The v2.5 tokenomics proposal reduces token incentives given to traders and stakers by more than 68%, moving CAKE toward a deflationary economy.

PancakeSwap Passes CAKE Tokenomics Proposal

PancakeSwap, a leading decentralized exchange (DEX) on the BNB Smart Chain (BSC), has passed the CAKE Tokenomics v2.5 Decision Proposal that looks to make their native token scarcer and adjust its product to favor longer-term stakers. The proposal reduces token incentives given to traders and stakers by more than 68%, moving CAKE toward a deflationary economy.

CAKE Syrup Pool Emissions Reduced

The decision proposal for CAKE Tokenomics v2.5 reduces CAKE Syrup Pool emissions from 6.65 CAKE/block to 3 CAKE/block immediately and further reduction of 0.35 CAKE/block (~2% APR) at month 6, resulting in 94% reduction in emission rates of PancakeSwap’s primary liquidity pool – the so-called Syrup Pool. This will reduce annual inflation rate from 21% to between 3%-5%.

Aggressive Reduction Favored By Community

PancakeSwap had laid out three viable options for its community to vote on to make CAKE “emission neutral”, however, the first option which allowed for an aggressive reduction of CA