As a result of the voting that ended today, PancakeSwap (CAKE) will start making a 44% cut in CAKE emissions at once, like never before, making a big change in rate basis.
In the election, which was attended by more than 5,000 PancakeSwap users, 92.64% of the votes were in favor of reducing emissions to the equivalent of 4 CAKEs per block . With the update to be made in the next few days, each block will release 15 CAKEs and yield farms will receive 5 CAKEs per block.
It was recommended to make no changes in the other options or to reduce emissions by 11%, 22% or 33% respectively .
PancakeSwap, which held these votes on the emission balance for the first time at the end of March, has never made such a big change in one go before.
These votes are made to reduce the amount of CAKE produced per block and to slow the inflation of CAKE, which has no upper limit in terms of supply .
While reducing CAKE emissions on farms is thought to be good for the supply in the long run , this generally leads to a decrease in the pools’ compound annual interest (APR) rate in the short run.
Only the option that received at least 50% of the votes was put into effect, and approximately 21.9 million votes were cast in terms of weight .
The three PancakeSwap users who participated in this vote each accounted for about 40% of the vote . All of them voted to reduce emissions by 44%. A user on Reddit named CBDgummieshop commented on the resulting chart :
“Remember that almost 50% of the votes needed to make such an incredible cut (in emissions) came from these three addresses. So a handful of rich people will benefit from the increase in the (CAKE) price, while 98% of swappers will lose 40% of their income from staking. Welcome to the real world.”