No, Cake coins are not issued indefinitely. PancakeSwap has developed multiple mechanisms to control inflation, including burning, locking, and emission table-based issuance, to ensure that the total supply of Cake coins is capped at 750 million.
Is there an unlimited number of Cake coins?
Cake coins are not issued indefinitely.
Detailed explanation:
Cake coin is the native token of PancakeSwap decentralized exchange (DEX). PancakeSwap is an automated market maker (AMM) built on Binance Smart Chain (BSC).
Unlike some other cryptocurrencies, the issuance of Cake coins is limited. The PancakeSwap team has set the total supply of Cake coins at 750 million.
In order to control inflation, PancakeSwap uses a variety of mechanisms, including:
- Burning mechanism: PancakeSwap will regularly use part of the transaction fee for repurchase And destroy Cake coins, thereby reducing the number of tokens in circulation.
- Lock-up mechanism: The team and early investors lock their Cake coins for a period of time, helping to prevent selling pressure.
- Issue Emission Schedule: PancakeSwap issues new Cake coins based on a predetermined emission schedule. Emissions decrease over time and will eventually reach a cap on the total supply.
Through these mechanisms, PancakeSwap ensures that Cake coins will not be issued indefinitely and maintains the value of the tokens.
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