What you're telling everyone is that those who bought in the previous years and have been long-term pledging should seriously look for opportunities to cut losses. If it drops to 2.3~2.88, it will be a devastating loss. 😭😭😭😭😭😭😭😭😭😭😭

Key Focus Target: $CAKE

Just now, PancakeSwap announced that CAKE Token Economics 3.0 will officially start on April 23!

So what is "CAKE Token Economics 3.0", and what impact does it have on "CAKE"? Let's clarify in one article:

1. Why reform the economic model?

On one hand, it is because the existing veCAKE locking mechanism is complex, increasing the threshold for user participation, and there is an imbalance between long-term governance rights and short-term incentives.

On the other hand, CZ suggested replacing the ve-token model with a buyback and burn model, believing that burning is more direct and effective.

Therefore, the PancakeSwap team responded quickly and proposed the CAKE Token Economics 3.0 proposal, intending to reform the ve scheme that has been running for many years.

2. What are the main changes in CAKE Token Economics 3.0?

(1) Achieve approximately 4% annual deflation, with CAKE's total supply decreasing by about 20% by 2030;

(2) Significantly reduce the token issuance, daily issuance dropping from about 40,000 tokens to 22,500 tokens, controlling inflation;

(3) Eliminate CAKE staking, veCAKE locking, Gauges weight voting and profit-sharing mechanisms, simplify the governance process, and truly make the tokens belong to the holders;

(4) Introduce a buyback and burn mechanism, using part of the transaction fees and profits to buy back and burn CAKE, enhancing the token's scarcity and price support.

3. Impact on CAKE's price

If the implementation of Token Economics 3.0 goes smoothly and market sentiment is positive, the price of CAKE could rise by 20%-50% from the current $1.92, reaching between $2.30 and $2.88.