A Vote for the Longevity of CAKE
Article source, here.
TL;DR
Back on April 19th, a proposal was made to change the CAKE tokenomics.
The proposal is very likely to go through with over 55% of people choosing for 'an aggressive reduction in staking rewards' (and therefore an aggressive reduction in inflation for the project).
What is cool is that when we zoom out and look at this process as a whole, it's fundamentally different than anything we've seen before.
Full Story
Imagine your bank saying: "Instead of that 20% interest we promised you, we're going to give you 3-5%."
"We believe it's better for all of our customers and if you don't agree, you're welcome to leave."
Well that's pretty much exactly what's happened with the PancakeSwap project over the past week or so.
Back on April 19th, a proposal was made to change the CAKE tokenomics.
Here's the long and the short of it:
"Current inflation rates are unsustainable for CAKE over the long term, and reductions are required for the long term health of PancakeSwap."
Translation:
We thought we could offer 20% yield on staked CAKE, but turns out, if we want this project to last indefinitely, we need to cut that down to 3-5%."
The community reaction was...interesting.
On one hand, since April 19 the amount of staked CAKE has reduced from 1.007 billion to 677.851 million (as of this writing) and the price has dropped by almost 25%.
At the same time, the proposal is very likely to go through with over 55% of people choosing for 'an aggressive reduction in staking rewards' (and therefore an aggressive reduction in inflation for the project).
So basically, CAKE holders are saying: "Hey, we don't like this, but the reality is that this is the best thing for the project overall."
Whether this is good or bad, right or wrong, we're not the ones to say.
What is cool, however, is that when we zoom out and look at this process as a whole, it's fundamentally different than anything we've seen before.
The ones who are impacted are making the calls, rather than it being forced on them (as is the case with traditional banks).
That's a very cool feature of Web3.