CAKE Price Suffers as Staking Rewards Debate Continues
- It seems like the community has already given the nod for the proposed change in staking rewards.
- CAKE suffered a price decrease of more than 23% over the last week.
Holders of PancakeSwap (CAKE) have been on edge as the community debates a change in the token’s economic model. Although the proposed change is likely to be favorable for PancakeSwap, the debate has had a very negative effect on the crypto’s price over the last week.
PancakeSwap is a decentralized exchange (DEX), and this allows its users to trade various cryptocurrencies, provide liquidity on trading pools and to earn rewards from CAKE tokens. Unfortunately, the change in the project’s economic model has caused a lot of uncertainty among users.
Developers will now aim to reduce CAKE’s inflation from more than 20% to between 3-and-5%. This could help to improve PancakeSwap’s long-term health, but there is a cost as it will lower the amount of tokens stakers can earn. This then, in turn, will lead to a decline in staking rewards.
Naturally, this is a big move for the project as its staking rewards were a significant selling point for PancakeSwap in the past. Despite this, it seems like the community has already given the nod for the proposed change.
Since then there has been a decrease in the number of CAKE stakers which caused an inevitable drop in CAKE’s price over the last few days. At press time, however, CAKE is trading hands at $2.64 after a 1.85% price increase over the last 24 hours.
This has unfortunately done nothing to bring CAKE’s weekly performance back into the green as the altcoin is still down by more than 23% over the last seven days. The crypto’s monthly performance does not look much better as CAKE is down almost 30% over the last thirty days as well.
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