PanckeSwap reveals new community proposal: Will CAKE get on track?
- CAKE’s latest proposal that focuses on real yield will be under voting until 28 April 2023.
- PancakeSwap v3 registered growth, but CAKE investors were not happy
PancakeSwap [CAKE] recently announced its new CAKE Tokenomics v2.5 Decision Proposal, which is currently under voting. The proposal focuses on low staking inflation, real yield, and benefits for long-term CAKE stakers.
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📢 Attention PancakeSwap community!
⏰ It's time to vote on our CAKE Tokenomics v2.5 Decision Proposal, which focuses on low staking inflation, real yield, and benefits for long-term CAKE stakers.
👉 Read our AMA recap before you vote: https://t.co/eSEFg8kKWd
🗳 Cast your vote… pic.twitter.com/CcFCGVu39N
— PancakeSwap🥞Ev3ryone's Favourite D3X (@PancakeSwap) April 26, 2023
Read PancakeSwap’s [CAKE] Price Prediction 2023-24
What does the new proposal represent?
To give a background, in a discussion that took place last week, reforms regarding low staking inflation, the real yield from PancakeSwap’s protocol revenues, and more were put forth. Based on the responses, the new proposal was drafted.
PancakeSwap mentioned that the current inflation rates were unsustainable for CAKE over the long term. Additionally, reductions could be required for the long-term health of PancakeSwap. To tackle this challenge, CAKE came up with two options: aggressive reduction or gradual reduction.
Option 1 vs. Option 2
As per the official proposal, if option 1 is approved, then the network will adjust CAKE Syrup Pool emissions from 6.65 CAKE/block to 3 CAKE/block immediately. Thereafter, reduce 0.5 CAKE/block monthly for five months.
On the other hand, if option 2 gets a green signal, CAKE will adjust CAKE Syrup Pool emissions from 6.65 CAKE/block to 4.5 CAKE/block.
PancakeSwap v3’s performance is on par
While the network drafted the proposal, its v3 registered growth in multiple aspects. Dune’s data revealed that v3’s number of transactions increased on both Ethereum [ETH] and BNB Chain [BNB].
While daily volume increased on the BNB Chain, the graph registered a decline for Ethereum. Nonetheless, the number of users increased on both chains.
CAKE investors had a tough week
While PancakeSwap v3’s performance was satisfactory, CAKE took a huge blow as its price declined by more than 22% in the last week. According to CoinMarketCap, at the time of writing, CAKE was trading at $2.70 with a market capitalization of over $527 million.
However, a few of the metrics suggested the possibility of a trend reversal. CryptoQuant’s data revealed that CAKE’s Relative Strength Index (RSI) was in an oversold position at press time. This can initiate buying pressure.
CAKE’s Market Value to Realized Value (MVRV) ratio was also drastically down, which can be a possible signal of a market bottom.
How much are 1,10,100 CAKEs worth today
Nonetheless, the market was still bearish on CAKE, as evident from its high negative sentiment.
Interestingly, CAKE ranked second on the list of BNB Chain projects by highest social activity. Considering the skyrocketing negative sentiment, it was likely that most of the mentions were bearish.
Top Cryptocurrencies on #BNBChain by Social Engagement last 24h📈
🥇 $FLOKI @RealFlokiInu
🥈 $CAKE @PancakeSwap
🥉 $DOME @EVER#BABYDOGE @BabyDogeCoin @bitgertbrise @Injective_ @VitaInuCoin @bscstation @_hamster_coin @1inch @daomaker @polkastarter @VoltInuOfficial @GoGalaGames pic.twitter.com/uxU6O49a9S
— Crypto Insights (@CryptoInsightsX) April 26, 2023