Pancake Swap Reduces emmissions by 10%
I guess I am out of the loop because there is apparently a vote once a month to talk about emissions. As you may notice, there is more Cake coins every day. Well, maybe not on Monday when they do the scheduled burn. They just reduced emissions so that they can try to make the coin non inflationary or deflationary.
The goal is to make the Cake coin more valuable and one of the ways to do this is by reducing emissions. The downside is that if you are a Cake Staker, you will probably see a direct reduction in your yield. My main concern is obviously the Cake pool and the Auto Cake pool.
Right now Cake yields about 74 percent and when you continuously compound it, that rate turns into an annual APY of about 106 percent. I have a feeling the 74 is going to be reduced to 67 percent and the APY is going to be reduced to about 100%. That will still make Cake the greatest investment of our time but it might not be the way you were planning.
When I look at the APY of Cake, I imagine that I will have double the amount of coins in a year. Now that the reduction is happening, I am pretty sure I won't have double. There will be many more reductions as Cake holders chose to have the coin increase in value instead of by being Staked. I am not sure if this is a good idea right now.
There are lots of new chains coming up and offering ridiculous yields. Check out some of the stuff on Polygon. Even with the reduction, our team is still long Cake and definitely not selling. Not every token or crypto does something. Cake has a purpose. Cake coins provide the incentive needed to have gigantic liquidity pools for all the major tokens on Binance Chain. That is a pretty big deal. Swapping tokens is an important part of the ecosystem and no one does it better on Binance Smart Chain than Pancake Swap.
As Binance continues to get banned from more and more countries it will continue to defy borders and governments as it builds out its decentralized infrastructure. Binance Chain is decentralized and eventually I bet the Binance CEX will also be decentralized. We are getting close to the day when companies will not have to obey governments. Companies will become decentralized and censorship resistant. They will not longer have headquarters in a country. They will be headquartered on Web3 and no one will be able to take them down or prevent their citizens from accessing the sites.
Governments are going to lose a lot of power over the next generation as they lose control of the money supply and lose their ability to collect taxes from worldwide corporations.
Once a company can withstand a US invasion on their data infrastructure, they are no longer subject to US laws. Binance follows US laws because it makes sense to follow US laws. CZ still needs to worry about being arrested and kidnapped and coerced by governments. Eventually companies like Binance will have their own armies to protect their data and allow them to continue to make money no matter which government wants them to stop.
Until that time, we can all enjoy fat yields from PancakeSwap and hope that Binance doesn't start a war some day.