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TL;DR
Again on April nineteenth, a proposal was made to vary the CAKE tokenomics.
The proposal may be very prone to undergo with over 55% of individuals selecting for ‘an aggressive discount in staking rewards’ (and due to this fact an aggressive discount in inflation for the challenge).
What’s cool is that once we zoom out and take a look at this course of as an entire, it is basically completely different than something we have seen earlier than.
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Think about your financial institution saying: “As a substitute of that 20% curiosity we promised you, we will offer you 3-5%.”
“We consider it is higher for all of our prospects and in case you do not agree, you are welcome to go away.”
Nicely that is just about precisely what’s occurred with the PancakeSwap challenge over the previous week or so.
Again on April nineteenth, a proposal was made to vary the CAKE tokenomics.
Here is the lengthy and the wanting it:
“Present inflation charges are unsustainable for CAKE over the long run, and reductions are required for the long run well being of PancakeSwap.”
Translation:
We thought we may provide 20% yield on staked CAKE, however seems, if we would like this challenge to final indefinitely, we have to reduce that right down to 3-5%.”
The neighborhood response was…fascinating.
On one hand, since April 19 the quantity of staked CAKE has decreased from 1.007 billion to 677.851 million (as of this writing) and the value has dropped by nearly 25%.
On the similar time, the proposal may be very prone to undergo with over 55% of individuals selecting for ‘an aggressive discount in staking rewards’ (and due to this fact an aggressive discount in inflation for the challenge).
So mainly, CAKE holders are saying: “Hey, we do not like this, however the actuality is that that is one of the best factor for the challenge total.”
Whether or not that is good or unhealthy, proper or mistaken, we’re not those to say.
What’s cool, nevertheless, is that once we zoom out and take a look at this course of as an entire, it is basically completely different than something we have seen earlier than.
Those who’re impacted are making the calls, reasonably than it being pressured on them (as is the case with conventional banks).
That is a really cool function of Web3.
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