Demex Daily #57: $CAKE PancakeSwap Token Rises on Reduced Supply Proposal

What’s Interesting Today:

PancakeSwap, a decentralized exchange, proposed to reduce the maximum supply of its CAKE token from 750 million to 450 million, resulting in a significant price surge. CAKE's price increased by 20% on Thursday, reaching its highest level since May. This proposal is part of PancakeSwap's strategy to transition from a high-inflation emissions model to a more sustainable approach. The platform, which is the leading protocol on the Binance Smart Chain with $1.4 billion in total value locked, operates on a buyback-and-burn model. According to ChefMochi, PancakeSwap's lead developer, this model can lead to deflation if the amount of CAKE bought and burned exceeds the amount emitted. Notably, PancakeSwap has been successfully reducing the total supply of CAKE for three consecutive months, as of December 5th.

The Ethereum "Dencun" upgrade, scheduled for testing on January 17, aims to reduce transaction fees, enhance bridge and staking features, and modify smart contract operations. It includes the "proto-danksharding" proposal for temporary data storage, further fee reduction mechanisms, and a limitation on the self-destruct function in smart contracts. After testing on the Goerli testnet, it will proceed to Sepolia and Holesky testnets, with no mainnet launch date announced.