PancakeSwap V4 has successfully executed a significant token burn, eliminating a total of 8,589,242 $CAKE tokens. This token burn has an approximate value of $18 million USD and is aimed at enhancing the scarcity and value of the tokens over time. The strategic move is expected to boost investor confidence and support the long-term sustainability of the decentralized finance (DeFi) market.
In addition to the token burn, PancakeSwap has implemented various measures to strengthen its economy. The goal-oriented process of token burn is designed to improve token distribution and apply deflationary pressure on the price of $CAKE tokens.
The number of burned tokens is proportional to the contribution of PancakeSwap’s multiple revenue streams. The trading fees from different protocols within the platform showed varying results. Trading fees from the AMM V2 protocol amounted to 82,000 CAKE ($176,000 USD), representing a decrease of 44%. On the other hand, trading fees from the AMM V3 protocol increased to 144,000 CAKE ($309,000 USD), indicating an 82% growth.
Activities related to prediction on the PancakeSwap platform have surged, with a 45% increase in CAKE contributions, totaling 63,000 CAKE ($136,000 USD). Additionally, the lottery on the platform raised 33,000 CAKE ($69,000 USD), experiencing an overall growth of 39%.
While trading activities, non-AMM protocols, NFT sales, and gaming revenues have shown varying levels of decline or increase, it highlights PancakeSwap’s ability to generate revenue from various sources. The company aims to maximize operational efficiency and profitability in the DeFi industry.