This reduced its total supply by 9,171,676 CAKE tokens, equivalent to a staggering $15 million.
Token burns like these are a critical part of PancakeSwap’s tokenomics, helping to manage the supply of CAKE. Let’s discover some details about this important event for Pancakeswap.
Breakdown of the Burned Tokens
The burn includes CAKE collected from various activities on the platform, including trading fees, predictions, lottery, and NFTs.
Source: X
Here’s a detailed look at how the burned tokens were accumulated:
- Trading Fees (AMM V2): A total of 177,000 CAKE, worth approximately $295,000, was burned from the fees. Generated by the platform’s Automated Market Maker (AMM) V2. This represents a 9% decrease compared to the previous period, reflecting changes in trading volumes or user activity.
- Trading Fees (AMM V3): The AMM V3 fees contributed 156,000 CAKE, valued at $260,000, to the burn. Notably, this marks a significant 140% increase, showcasing the growing adoption and usage of this upgraded trading mechanism on PancakeSwap.
- Trading Fees (Non-AMM Platforms): Fees from non-AMM platforms like perpetual contracts and position managers added 359 CAKE, roughly worth $600, to the burn. This segment saw a 27% increase, indicating a steady rise in the use of diverse financial instruments on the platform.
- Prediction Market: The prediction market, a popular feature where users can bet on price movements, contributed 62,000 CAKE, valued at $104,000, to the burn. This is an 8% decrease, possibly due to market fluctuations or changing user preferences.
- Lottery: PancakeSwap’s lottery, where users purchase tickets for a chance to win large CAKE prizes, burned 28,000 CAKE, or $47,000 in value, reflecting a 3% decrease.
- NFTs: The smallest contribution came from NFTs, burning 0.1 CAKE worth $200. This segment saw a 19% decline, likely due to lower NFT transaction volumes or market interest.
Impact of the Burn
This burn is part of PancakeSwap’s ongoing strategy to decrease the circulating supply of CAKE, which is designed to enhance scarcity and potentially increase the token’s value over time. By continuously burning tokens, PancakeSwap aims to maintain deflationary pressure on CAKE, making it more appealing to holders and investors alike.
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