Near-Unanimous Vote Cuts CAKE Supply
On December 21, 2023, the Pancakeswap community received a governance proposal to reduce the total supply of CAKE tokens by 300 million. The voting period began on Thursday and concluded on Friday, December 29, 2023, with an overwhelming majority of 97.88% of the community supporting the supply cut.
The proposal received strong backing, with only 2.12% of the community opposing it. This action will result in a decrease in the total supply of CAKE tokens from 750 million to 450 million. The original proposal stated, "With a current circulating supply of 388M CAKE, the Kitchen believes this new and lower cap will be sufficient to gain market share across all chains and sustain the VECAKE model."
Following the governance vote, the value of Pancakeswap's CAKE token experienced a significant surge of 42.6% against the U.S. dollar over the previous week. It also achieved an impressive increase of over 62% for the month. However, there was a slight dip of approximately 2.4% against the greenback in the past day. Currently, CAKE has a market capitalization of $872 million, accounting for 0.05% of the total $1.75 trillion crypto economy.
Ranked as the third-largest decentralized exchange (dex) globally by volume, Pancakeswap currently has $1.66 billion in total value locked (TVL) within its protocol. The dex platform has witnessed a 16.81% increase in TVL over the past month. Despite the monthly surge of 62% in the value of CAKE, the native cryptocurrency of the dex platform is still trading 91.80% below its all-time high of $43.96 per coin, which was reached on April 30, 2021. As of today, CAKE's 24-hour intraday trading range has fluctuated between $3.49 and $3.83 per unit.
What are your thoughts on the reduction of CAKE's token supply? Feel free to share your opinions and insights on this subject in the comments section below.
Frequently Asked Questions
Is gold a good investment IRA?
If you are looking for a way to save money, gold is a great investment. It can be used to diversify your portfolio. But gold has more to it than meets the eyes.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the oldest currency in the world.”
But unlike paper currencies, which governments create, gold is mined out of the earth. It is very valuable, as it is rare and hard to create.
The price of gold fluctuates based on supply and demand. When the economy is strong, people tend to spend more money, which means fewer people mine gold. Gold's value rises as a result.
On the flipside, people may save cash rather than spend it when the economy slows. This results in more gold being produced, which drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
In addition to earning interest on your investments, this will allow you to grow your wealth. In addition, you won’t lose any money if gold falls in value.
Is the government allowed to take your gold
Your gold is yours, so the government cannot confiscate it. You worked hard to earn it. It is yours. There may be exceptions to this rule. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Your precious metals can also be lost if you owe tax to the IRS. However, even if taxes are not paid, gold is still your property.
What are the advantages of a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It's tax-deferred until you withdraw it. You control how much you take each year. There are many types available. Some are better suited to college savings. Others are designed for investors looking for higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. The earnings earned after they withdraw the funds aren't subject to any tax. This account is a good option if you plan to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This eliminates the need to constantly make deposits. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold is one the most secure investment options available. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even during economic turmoil, gold prices tend to stay relatively stable. It is therefore a great choice for protecting your savings against inflation.
How does gold perform as an investment?
Gold's price fluctuates depending on the supply and demand. Interest rates can also affect the gold price.
Because of their limited supply, gold prices can fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
irs.gov
investopedia.com
bbb.org
finance.yahoo.com
How To
Three Ways to Invest In Gold For Retirement
It's essential to understand how gold fits into your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You might also be interested to invest in gold outside the workplace. One example is opening a custodial accounts at Fidelity Investments if an IRA (Individual Retirement Account), if you already own one. You may also want to purchase precious metals from a reputable dealer if you don’t already have them.
These are the three rules to follow if you decide to invest in gold.
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, cash in your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. It's easier to sell physical gold coins rather than certificates. You don't have to store physical gold coins.
- Diversify Your Portfolio. Never place all your eggs in the same basket. This means that you should diversify your wealth by investing in different assets. This helps to reduce risk and provides more flexibility when markets are volatile.
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By: Jamie Redman
Title: The Pancakeswap Community Votes to Reduce CAKE Token Supply
Sourced From: news.bitcoin.com/cake-token-supply-cut-pancakeswap-communitys-decisive-vote-spurs-market-surge/
Published Date: Fri, 29 Dec 2023 16:30:57 +0000
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