Crypto space is full of challenges of its own. Sometimes it becomes difficult to assess the long term effect a decision can have on the market. The same was seen last year when PancakeSwap reduced the maximum supply of its native token CAKE. Backed by 97% of community votes, the maximum supply of this token was reduced from 750 million to 450 million. This step from PancakeSwap was seen as a shift from high inflation to embrace a more sustainable, deflationary approach.
Now, almost after more than a year later, the market is watching closely. What would be the impact of the move so boldly taken, now that it is the high time? What would be the growth model henceforth? Let’s get into the details and try to figure it out.
The immediate impact of this move last year sent a strong signal to the market regarding PancakeSwap’s commitment towards long term value. It sent a message that scarcity has increased. The result- Irrespective of immense volatility in the market last year CAKE showed price resilience. This was additionally supported by controlled emission and regular token burns.
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