CAKE is the native token associated with PancakeSwap, a decentralized exchange (DEX) operating on the Binance Smart Chain (BSC). Introduced in September 2020, PancakeSwap stands as one of the leading DEXes on BSC, largely attributed to its competitive transaction fees compared to other platforms, especially those on the Ethereum network.
PancakeSwap is a fork of SushiSwap and has an almost identical codebase. PancakeSwap utilizes Automated Market Makers (AMMs) instead of the conventional order book model. In this system, liquidity providers furnish the necessary funds to liquidity pools, enabling users to perform trades. In exchange for providing liquidity, these providers earn fees, which are proportionately distributed based on their contribution.
The CAKE token serves multiple purposes within the PancakeSwap ecosystem. Primarily, it acts as a reward for liquidity providers. Furthermore, it can be staked to earn additional tokens, or used in governance proposals, allowing holders to have a voice in the platform's developmental trajectory.
Additionally, PancakeSwap incorporates a deflationary model for CAKE, periodically burning tokens to reduce overall supply, a mechanism intended to counteract inflationary pressures.
Above are only for introduction, not intended as investment advice.
Explore the tokenomics of pancakeswap-token (CAKE) and review the project details below.
What is the allocation for pancakeswap-token (CAKE)
PancakeSwap is one of the projects with a very effective tokenomic structure. Even though there's no Max Supply, implying that inflation could increase, the PancakeSwap team has designed the product in such a way that the circulating CAKE (used to create value) is always higher than the CAKE being minted.
What is the supply schedule for pancakeswap-token (CAKE)
The PancakeSwap token CAKE is a BEP20 token that originally launched on Binance Smart Chain. The primary purpose of CAKE is to incentivize liquidity provision to the PancakeSwap platform. Every day, a total of 1,154,999 CAKE tokens are minted. Out of this, 95.4%, or 1,099,085 CAKE tokens, are burned. The remaining 52,914 CAKE tokens are distributed as follows:
- Trading: 3% (34,514 CAKE)
- Staking: 1.25% (14,400 CAKE)
- Other: 0.35% (4,000 CAKE)
CAKE is the native token associated with PancakeSwap, a decentralized exchange (DEX) operating on the Binance Smart Chain (BSC). Introduced in September 2020, PancakeSwap stands as one of the leading DEXes on BSC, largely attributed to its competitive transaction fees compared to other platforms, especially those on the Ethereum network.
PancakeSwap is a fork of SushiSwap and has an almost identical codebase. PancakeSwap utilizes Automated Market Makers (AMMs) instead of the conventional order book model. In this system, liquidity providers furnish the necessary funds to liquidity pools, enabling users to perform trades. In exchange for providing liquidity, these providers earn fees, which are proportionately distributed based on their contribution.
The CAKE token serves multiple purposes within the PancakeSwap ecosystem. Primarily, it acts as a reward for liquidity providers. Furthermore, it can be staked to earn additional tokens, or used in governance proposals, allowing holders to have a voice in the platform's developmental trajectory.
Additionally, PancakeSwap incorporates a deflationary model for CAKE, periodically burning tokens to reduce overall supply, a mechanism intended to counteract inflationary pressures.
Above are only for introduction, not intended as investment advice.