Introduction
The Pancakeswap community recently held a governance vote to decrease the total supply of CAKE tokens by 300 million. An overwhelming 97.88% of community votes supported this reduction, bringing the total supply down from 750 million to 450 million CAKE tokens.
The Governance Proposal
On December 21, 2023, a governance proposal was put forward to deduct 300 million CAKE tokens from the total supply. The voting process started on Thursday and concluded on Friday, December 29, 2023, resulting in the community's approval of the supply cut.
A significant majority of 97.88% voted in favor of the proposal, with only 2.12% opposing it. This action will effectively reduce the supply from 750 million CAKE tokens to 450 million. The original proposal stated, "With a current circulating supply of 388M CAKE, the Kitchen believes this new and lower cap will be sufficient to gain market share across all chains and sustain the VECAKE model."
Market Reaction
Following the governance vote, Pancakeswap's CAKE token experienced a surge of 42.6% against the U.S. dollar over the previous week and achieved a remarkable increase of over 62% for the month. However, in the past day, CAKE saw a slight dip of about 2.4% against the greenback. Currently, CAKE holds a market capitalization of $872 million, which represents 0.05% of the total $1.75 trillion crypto economy.
Pancakeswap's Position
Pancakeswap currently ranks as the third-largest decentralized exchange (dex) globally in terms of volume. The protocol holds a total value locked (TVL) of $1.66 billion. Over the past month, Pancakeswap has witnessed a 16.81% increase in TVL. Despite the monthly surge of 62% in CAKE token value, the native crypto of the dex platform is still trading 91.80% below its all-time high of $43.96 per coin, which was set on April 30, 2021. As of today, CAKE's 24-hour intraday trading range has fluctuated between $3.49 and $3.83 per unit.
Conclusion
The Pancakeswap community's decision to reduce the supply of CAKE tokens by 300 million has received overwhelming support. This action aims to strengthen the project's market share across various chains and sustain the VECAKE model. The market has responded positively, with CAKE experiencing significant price increases. However, it is important to note that CAKE is still trading below its all-time high. Share your thoughts and opinions on this supply reduction in the comments section below.
Frequently Asked Questions
Is buying gold a good retirement plan?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion bars are the most popular way to invest in gold. There are many ways to invest your gold. It's best to thoroughly research all options before you make a decision.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you require cash flow, gold stocks can work well.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
What are the pros and cons of a gold IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are also disadvantages to this type of investment.
You could lose all of your accumulated money if you take out too much from your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
You can purchase insurance if you want to keep your money out of a bank. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. Insurance that covers losses upto $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit the number of ounces of gold that you can own. Others allow you the freedom to choose your own weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more costly than gold futures. Futures contracts allow you to buy gold with more flexibility. Futures contracts allow you to create a contract with a specified expiration date.
You will also have to decide which type of insurance coverage is best for you. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. It does provide coverage for damage from natural disasters, however. Additional coverage may be necessary if you reside in high-risk areas.
Insurance is not enough. You also need to think about the cost of gold storage. Insurance won't cover storage costs. Banks charge between $25 and $40 per month for safekeeping.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians aren't allowed to sell your assets. Instead, they must retain them for as long and as you require.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. It is also important to specify how much money you will invest each month.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. The company will review your application and send you a confirmation letter.
A financial planner is a good idea when opening a gold IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
How can you withdraw from an IRA of Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, determine how much money you plan to withdraw from your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Before you choose one, weigh the pros and cons.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. However, each coin will need to be counted individually. However, individual coins can be stored to make it easy to track their value.
Some people like to keep their coins in vaults. Others prefer to store their coins in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
How is gold taxed in Roth IRA?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
These rules vary from one state to another. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. Massachusetts allows you up to April 1st. New York has a maximum age limit of 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
cftc.gov
bbb.org
How To
Tips for Investing In Gold
Investing in Gold is one of the most popular investment strategies worldwide. This is because there are many benefits if you choose to invest in gold. There are several options to invest in the gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
Before you buy any type of gold, there are some things that you should think about.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. If not, you may want to consider purchasing gold from overseas.
- The second thing you need to do is decide what type of gold coins you want. You have the option of choosing yellow, white, or rose gold.
- The third factor to consider is the price for gold. It is better to start small, and then work your way up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Remember that gold prices are subject to change regularly. Keep an eye on current trends.
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By: Jamie Redman
Title: Pancakeswap Community Votes to Reduce CAKE Token Supply by 300 Million
Sourced From: news.bitcoin.com/cake-token-supply-cut-pancakeswap-communitys-decisive-vote-spurs-market-surge/
Published Date: Fri, 29 Dec 2023 16:30:57 +0000
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