The secret behind great pancakes

Introduction

I want to share some concepts about CAKE’s tokenomics and I want to see if it is sustainable in the long term.

$CAKE’s tokenomics

The tokenomics is the distribution of the token around all the ecosystem and determines its inflation/emission. Let’s take a look at the CAKE tokenomics together and break down it and try to understand how it works.

  • 2,514 CAKEs to those who provide liquidity on some farm by depositing two token that have the same value in dollars; again, in proportion to how much value has already been deposited and how much value you are going to deposit.
  • The remaining 0,139 CAKEs are accumulated and injected as a prize for whoever win the lottery.

Conclusion

In conclusion there is one thing to remember, the team is planning new developments for the project and one of the main objectives is to give more use cases to the token in order to implement new burning mechanisms and to make the token emission equal to zero or lower.

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