PancakeSwap Token Burn
Update 6/8/21 8am CST and there was a burn last night. I saw that total tokens went down to about 177 million. They burned over 5.5 million but for some reason the amount isn't actually going down. I was watching the amount go up yesterday and it appeared that more than 500k are being created each day. As I figure out how the emission works and exactly what it is tied to, I will continue updating this article. The main thing to take away from the update is that Pancakeswap is continuing to burn every Monday as they have done for the last 170 or so days.
Update 21:20 CST still no burn. I had another hopeful idea. Maybe the team is trying to buy Cake to burn from the open market and they haven't bought it all yet? Let's all hope that is the case because if there isn't the weekly burn I am going to have serious concerns with this token. I just checked and up until 170 days ago the burn looks like it happened daily and was possibly automated. I don't know the history of Pancakeswap well enough. I wasn't following it back then.
Update 20:04 CST They haven't burned the tokens yet and it has been over 7 days. I am getting kind of nervous. I'll update as soon as there is some good news. It appears that the burn process is not automated. Perhaps the person who burns the tokens is in the air right now flying home from the Miami show and can't make the transaction. At least that is what I will tell my self until I wake up tomorrow and see there are still over 180 million Cake coins. Burn baby burn!
I get excited every Monday. Its not for Monday night football or a softball game or anything that cool people would want to do. I get excited for Token burns. Yeah I said it. I wait all week and eagerly anticipate how many tokens Pancake Swap is going to burn of their Cake coin.
Why am I so excited? It is because It seems like Pancakake Swap could be the golden goose. The holy grail of making passive income. There is one major problem with Pancake swap that makes me scared. What scares me is that there is no hard cap on the token. They can print them forever. According to the rules that PancakeSwap has decided, they plan to yield about 500,000 new tokens per day and then they plan to burn 5 million a week. If that happens, there should be a shrinking supply and each token would need to go up in value to make up for the newly burnt tokens.
Here is a link to the Cake burn address. They burnt just under 6 million tokens last week about an hour from now. They burnt 5 million the week before. I am hoping they burn 7 million bringing the total amount of coins back to about 172 million.
If they end up burning less than 4 million, then the supply of Cake will increase each week causing the token to be worth less just because of supply and demand.
If PCS can figure out a way to continuously burn more tokens than they yield, the game can stay going for a while. If you think about Cake in Cake coins and not about dollars, you can see that even if Cake goes up to $100, the tokenomics should still work. They should still be yielding a similar amount and burning a similar amount. The problems start to happen if Cake goes to the moon. If cake becomes worth $1000 per coin, there will be less coins played in the lotter, less coins played in the predictions market, and less coins burned during IFO. I think that could cause the coin to fall in price as supply would most likely be greater than burn.
It is such an interesting balance that needs to be set. I don't know what the magic price is, but there should be a point where the price makes the burn to low increasing supply. I don't think we are close to that yet.
Supposedly Pancake just took the number one spot in Defi with most active wallet addresses. People want fast trasactions and they don't want to pay a lot of Gas. If you are not a whale Binance Smart Chain is really your only option.