Decentralized exchange platform PancakeSwap recently completed yet another token burn event.
According to a tweet by PancakeSwap, 6,898,491 $CAKE, which is worth about $23 million, were burned during the event.
This article will contain important details of the token burn event, the token burn process, and also access to the proof of burn on Binance Smart Chain (BSC).
🔥 6,898,491 $CAKE just burned – that’s $23M!
💰 Trading fees (Swap and Perpetual): 302k CAKE ($1M) +42%
🔮 Prediction: 113k CAKE ($381k) -17%
🎟️ Lottery: 40k CAKE ($134k) +20%
🔒 NFT Market, Profile & Factory: 1k CAKE ($2k) -52%
🔨 Auction: 32k CAKE ($109k) +69% pic.twitter.com/xHVdpNoVyV
— PancakeSwap 🥞 #BSC (@PancakeSwap) July 25, 2022
Details of the Recent PancakeSwap Token Burn
According to the official tweet, the most recent PancakeSwap (CAKE) token burn took place on July 25, 2022. It also involved 6,898,491 $CAKE tokens. That is an estimated $23 million worth of $CAKE tokens that were burned. Interestingly, the tokens were gotten from trading fees, the lottery, NFT market, auctions, and predictions.
According to the tweet:
- 302,000 $CAKE tokens (approx. $1 million) were gotten from trading fees. That is both swap and perpetual trading fees.
- The NFT Market also accounts for 1,000 $CAKE tokens (approx. $2,000).
- 113,000 $CAKE tokens (approx. $381,000) was gotten from prediction markets.
- Also, the lottery accounts for 40,000 $CAKE tokens (approx. $134,000).
- Lastly, 32,000 $CAKE (approx. $109,000) of the tokens burned were from the PancakeSwap auction.
You can view the proof of completion of the $CAKE token burn event on Binance Smart Chain (BSC) here.
Why the Token Burn?
The token burn event is a major part of the PancakeSwap deflationary mechanism. The DEX platform is also popularly known for its weekly token burn events. The token burn will help keep sell pressure at bay.
This is because about 530,000 $CAKE tokens are generated daily on the DEX via liquidity farming, staking, etc. To ensure supply does not exceed demand, a small amount of $CAKE tokens are burned.
More on PancakeSwap
As previously indicated, PancakeSwap is a top decentralized exchange (DEX) platform. Built on the Binance Smart Chain (BSC), it boasts of one of the highest trading volumes in the DEX ecosystem. Its native token, $CAKE, also completely powers the PancakeSwap ecosystem. It is a BEP-20 token. It also majorly focuses on encouraging people to become liquidity providers (LPs) on PancakeSwap.
CAKE also serves as a reward token on PancakeSwap to stakers and users who partake in farming activities. While farming and staking come with a fair amount of risks, it is also a great way to earn rewards and APRs on your assets.
The DEX platform also boasts of several top features. Some of these features include:
- Yield Farming
- Automated Market Maker (AMM)
- Liquidity Pools
- Initial Farm Offering (IFO)
- NFT profile system, trading and collection, etc.
In conclusion, PancakeSwap is arguably the most widely used DEX platform available today. It currently boasts of about 2.2 million users over the last 30 days with an estimated 26 million trades. Also, the DEX platform, over the last 30 days, has a TVL (Total Value Locked) of $3.7 billion.
CAKE Price Outlook
At the time of writing, $CAKE was trading at $3.85 with a market cap of $552,509,003 and a 24-hour trading volume of $100,031,348. The token price is also up by 11.5% in the last 24 hours. Interestingly, $CAKE also currently has a circulating supply of 143 million tokens and a total supply of 314 million tokens.
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