PancakeSwap has burned 7,153,999 CAKE tokens as the decentralized exchange (DEX) prepares for the V3 launch scheduled in April.
The DEX tweeted on Monday that it burned a total of $27 million worth of CAKE tokens. The protocol collected these tokens through various mediums such as trading fees, predictions, lottery, and non-fungible token (NFT) marketplace.
PancakeSwap also announced upgrading to V3 from the first week of April 2023. But, some community members have expressed displeasure with the poor price-action of CAKE.
PancakeSwap Announces $135,000 Airdrop
In a medium article, the DEX claims that V3 will bring competitive trading fees, trading incentives, improved liquidity provisioning, and yield farming experience. It has also announced a $135,000 worth of airdrop in CAKE tokens to celebrate its migration.
Out of the total airdrop amount, $105,000 is allotted to incentivize the existing users. At the same time, the protocol has planned to reward new users with the remaining $30,000. Users who provide liquidity of a minimum of $500 in specified liquidity pools are eligible for the airdrop.
PancakeSwap will also airdrop an NFT to the winners, along with CAKE tokens. But, the NFT will be non-transferable to any other wallets.
Despite the positive developments in the project, the price of the CAKE token has been down by 1.38% in the past 24 hours. It is down 91% from an all-time high of $44. According to DefiLlama, it has over $2.48 billion in Total Value Locked.
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On May 20th, 2021, PancakeSwap, an automated Decentralized Exchange (DEX) built on the Binance Smart Chain (BSC) platform, burned $27 million worth of BSC-based tokens (Cake) ahead of its Version 3 (V3) launch.
PancakeSwap is a permissionless DEX, utilizing the Binance Smart Chain for single-block automation on a decentralized platform. It is touted as the first decentralized exchange to use BSC.
The burn was executed in order to better guard against inflationary pressure on the already-difficult to predict Cake price, with the aim to increase the interest in the Binance Smart Chain platform within the cryptocurrency community.
By decreasing the number of active Cake tokens, PancakeSwap has improved the token scarcity, while simultaneously allowing supply and demand to play a significant role in determining its price.
With its upcoming V3 launch, PancakeSwap is anticipating a surge in transactions with the promise of more efficient, faster, and smoother transactions. Additionally, PancakeSwap is looking to provide superior liquidity solutions through a more secure and advanced version of their ‘sushi pool’.
The burning of $27 million worth of Cake tokens through PancakeSwap is a significant and crucial event to support the launch of its Version 3, as it solidifies the determination of the company to secure the best possible conditions for its users.
Overall, PancakeSwap’s token burn is indicative of its dedication to the BSC platform, which is expected to expand the visibility of PancakeSwap, as more traders look to get involved with Cake trading.