In its latest burn report, PancakeSwap revealed it had burned 0.089% of the CAKE total supply, achieving a negative net in November 2023.
According to a blog announcement, the PancakeSwap team has burned a total of 351,962 CAKE tokens in November 2023, which at current prices valued at nearly $880,000.
As noted by the team, the latest burn marks the third consecutive month of CAKE total supply reduction, with a cumulative -712,667 CAKE net mint over September, October, and November 2023. Amid the news, CAKE price jumped nearly 7%, surging up to $2.5, according to data from CoinGecko.
As of November 2023, PancakeSwap achieved a net mint of -351,962 CAKE, noting that more CAKE tokens were burned than minted during the month.
PancakeSwap burns CAKE tokens in an effort to make deflation higher than emission by building deflationary mechanisms into its products. As noted on PancakeSwap’s official website, the goal is “for more CAKE to leave circulation than the amount of CAKE that’s produced.”
With the latest update, CAKE now has a hard cap of 750 million tokens. However, the developers admitted they don’t want to reduce token emission too frequently in a bid to “still incentivize people to provide liquidity.”
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