Does cake coin have a destruction mechanism?

Cake coins have a destruction mechanism, the details of which include: Each transaction generates a 0.05% fee, of which 0.03% is used to repurchase and destroy Cake coins. The burning mechanism works by sending tokens to an inaccessible address, thereby permanently removing them. The benefits of a burning mechanism include: reducing supply, generating deflationary pressure, increasing investor confidence, and promoting long-term growth.

Cake coins have a destruction mechanism

Destruction mechanism details:

## Each trade in #PancakeSwap’s Automated Liquidity Pool (AML) incurs a 0.05% trading fee. 0.03% of this is used to buy back and destroy Cake coins, and 0.02% is used to distribute to PancakeSwap holders.

The destruction mechanism is implemented by "burning" tokens. Burning tokens refers to sending them to an unreachable address, thereby permanently removing them. By burning tokens, the total supply of Cake coins is reduced, thereby increasing their scarcity and value.

Benefits of the burning mechanism:

• Reduce supply and increase scarcity: Burning tokens helps reduce the number of tokens in the market Cake coin supply, thus making it more scarce. Scarcity usually causes a token to increase in value.
• Create deflationary pressure: Deflation is a phenomenon that occurs when supply decreases, causing prices to rise. The burn mechanism creates deflationary pressure by reducing the supply, thus boosting the value of Cake coins.
• Increase investor confidence: The burning mechanism shows that the project team is committed to maintaining the value of the token, which can increase investor confidence in Cake coins.
• Promote long-term growth: By burning tokens, CakeSwap can reduce selling pressure and promote long-term growth of the token.

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