PancakeSwap burns CAKE tokens worth $15m

After multi-chain decentralized exchange PancakeSwap announced that it had burned over 9 million tokens, its native token saw a slight increase in price.

PancakeSwap (CAKE) price rose by around 2.3% following the announcement. This allowed buyers to recover from lows of $1.64 earlier in the day. At press time, CAKE was changing hands at around $1.72, with 24-hour trading volume up more than 37% to $21.3 million.

PancakeSwap’s token burn

On September 2, PancakeSwap (CAKE) announced that the latest token burn on X permanently removed 9,171,676 CAKE tokens from circulation. According to details released by the DEX platform, the burn equated to $15 million worth of CAKE.

🔥 9,171,676 $CAKE Just burned – $15 million!

💰 Trading fees (AMM V2): 177k CAKE ($295k) -9%
💰 Trading fees (AMM V3): 156k CAKE (260k) +140%
💰 Trading fees (Non-AMM like Perpetual, Position manager etc.): 359 CAKE ($0.6k) +27%
🔮 Prediction: 62k CAKE ($104k) -8%
🎟️ Lottery:… pic.twitter.com/lpsbWlRnHX

— PancakeSwap turns 4 #Pancake4ever (@PancakeSwap) September 2, 2024

The latest token burn for PancakeSwap reduces the circulating supply of CAKE to 264,190,448 tokens, which makes up 58.71% of the total supply that the community is working to reduce through regular token burns.

In the crypto market, projects have used burn mechanisms to reduce the circulating supply of the native token. The general aim is to inject scarcity into the market of the particular digital asset, which is seen to have an upward effect on the price.

PancakeSwap introduced a major proposal regarding the CAKE token economy in December 2023. The proposal asked the community to vote on whether to reduce the CAKE supply by 300 million tokens, reducing the maximum supply of 750 million tokens to 450 million tokens.

As a result of the voting, PancakeSwap’s current total supply is 383,118,820 units, and its maximum supply is 450 million units.