PancakeSwap v2 will introduce new improvements to the protocol and additional uses for its native token.
With over 10,87 million votes in favor, representing 98,8% of the project's governance, the PancakeSwap crypto community has given the green light to an improvement proposal that will implement a new version of the DeFi protocol that, among other things, will limit the supply of CAKE tokens to a maximum of 750 million units.
On Twitter, developers of the BSC-based decentralized exchange (DEX) protocol welcomed the community's support for the proposal presented earlier this month.
Titled “Tokenomics 2.0: Redefining Retail”, PancakeSwap’s proposal seeks to redesign its trading system to increase the value and utility of the project and bring greater benefits to its user community. The developers of this DEX also noted that the v2 version will contribute to the long-term sustainability of the PancakeSwap ecosystem.
It may interest you: PancakeSwap is the most visited DEX in the DeFi ecosystem
Capping CAKE supply at 750 million
The central element of the governance proposal approved by the PancakeSwap community is to limit the supply of the protocol's native CAKE token to a maximum of 750 million units.
In the document, the developers explained that limiting the total supply of the token will better ensure its growth and development and that of its community. At the current rate of minting, the protocol is expected to reach its maximum supply within a period of 3 years, although the developers set a more realistic goal of 4,2 years.
It should be clarified that before the approval of this proposal, the supplierCAKE's reserves were infinite. Currently, there are 296.240.509 CAKE in circulation..
On the other hand, although the CAKE token has several uses within the protocol, the governance proposal seeks to expand its use cases. CAKE is used within PancakeSwap to assume commission fees, as a governance token, and to reward liquidity miners. But, in addition to these use cases, the v2 version of the DEX will introduce new ones. For example, weighted voting through this token.
PancakeSwap, the main DEX of the BSC
PancakeSwap has seen exponential growth over the past two years, becoming the flagship DEX on the BSC network.
Since 2020, the number of active unique addresses of this DEX on the blockchain has increased from 50.000 to over 150 million today, experiencing a stratospheric increase of over 3.000% in the last two years.
PancakeSwap also has the largest number of active users of any DEX on BSC. In the proposal, the protocol developers noted that the number of monthly active users (DAU) on this DEX has grown to approximately 400.000 users. In addition, it has a community of more than 1,5 million followers on the social network Twitter and more than 160.000 subscribers on its Telegram channel, where it has managed to gain a strong presence in recent months.
[hubspot type=cta portal=20298209 id=38fb28e1-1dc1-40e3-9098-5704ca7fcb07]
In the BSC DeFi ecosystem, which has returned to second place as the industry's largest decentralized finance ecosystem following the collapse of the Terra network's UST and LUNA cryptocurrencies, PancakeSwap currently has liquidity of $3.980 billion.
This protocol leads the BSC DeFi ecosystem with a dominance rate of over 45%, according to data from the DeFi monitoring platform Llama.
At the end of December 2021, Bit2Me implemented its native B2M token within this DEX, to ensure the interoperability of its token with the BSC blockchain and provide new use cases and utility to B2M users and holders.
Buy BTC at Bit2Me
Continue reading: Blockchain and DeFi, key points in JPMorgan's earnings report
