**PancakeSwap V4 Executes Major Token Burn to Bolster Economic Stability**
PancakeSwap V4 has undertaken a significant token burn, eliminating 8,589,242 $CAKE tokens, valued at approximately $18 million USD. This strategic initiative aims to enhance the token’s scarcity and value over time, thereby boosting investor confidence and supporting long-term sustainability in the decentralized finance (DeFi) market.
8,589,242 $CAKE just burned – that’s $18M!
Trading fees (AMM V2): 82k CAKE ($176k) -44%
Trading fees (AMM V3): 144k CAKE ($309k) +82%
Trading fees (Non-AMM like Perpetual, Position manager, etc.): 0.4k CAKE ($1k) -94%
Prediction: 63k CAKE ($136k) +45%
️ Lottery:… pic.twitter.com/oGgdFmcf5S
— PancakeSwap v4 (@PancakeSwap) July 1, 2024
**PancakeSwap Enhances Economic Strength with Strategic Token Burn**
PancakeSwap’s token burn strategy aims to optimize token distribution and the overall economy by reducing the circulating supply of $CAKE tokens, thereby applying deflationary pressure on the token’s price.
The burned tokens correspond to various revenue streams within PancakeSwap. Notably, the trading fees across different protocols yielded mixed results. Participation in AMM V2 generated 82,000 CAKE ($176,000 USD), a 44% decrease. Conversely, trading fees from AMM V3 rose to 144,000 CAKE ($309,000 USD), an 82% increase.
**Prediction Activities Surge on PancakeSwap with 45% Growth in CAKE Contributions**
Prediction-related activities surged, with contributions reaching 63,000 CAKE ($136,000 USD), marking a 45% growth. Additionally, the lottery raised 33,000 CAKE ($69,000 USD), showing an overall increase of 39%.
On the other hand, non-AMM trading activities, NFT sales, and gaming revenues experienced varying levels of decline or growth. This diversity in revenue streams underscores PancakeSwap’s strategy to maximize operational efficiency and profitability within the DeFi industry.