The Pancakeswap community recently conducted a governance vote to decrease the total supply of CAKE tokens by 300 million. The vote received overwhelming support, with 97.88% of community votes in favor of the reduction. As a result, the total supply of CAKE tokens will be reduced from 750 million to 450 million.
Background of the Governance Proposal
The governance proposal to deduct 300 million CAKE tokens from the total supply was submitted to the Pancakeswap community on December 21, 2023. The voting period started on Thursday and concluded on Friday, December 29, 2023. The community's endorsement of the supply cut was evident, with nearly 98% of the votes in favor of the proposal.
The reduction in supply is seen as a positive move by the community, as it is believed that the new and lower cap of 450 million CAKE tokens will help Pancakeswap gain market share across various chains and sustain the VECAKE model.
Market Performance of CAKE Tokens
Following the governance vote, the value of Pancakeswap's CAKE token experienced a significant surge. Over the past week, CAKE witnessed a 42.6% increase against the U.S. dollar and a remarkable 62% increase for the entire month. However, in the past day, CAKE did experience a minor dip of around 2.4% against the greenback.
Currently, CAKE has a market capitalization of $872 million, accounting for 0.05% of the total $1.75 trillion crypto economy.
Pancakeswap's Position in the Market
Pancakeswap is currently ranked as the third-largest decentralized exchange (dex) globally in terms of trading volume. The protocol has a total value locked (TVL) of $1.66 billion. Over the past month, the dex platform has witnessed a 16.81% increase in TVL.
Despite the recent surge in CAKE's value, the token is still trading at a significant discount of 91.80% compared to its all-time high of $43.96 per coin, which was recorded on April 30, 2021. As of today, CAKE's 24-hour intraday trading range has fluctuated between $3.49 and $3.83 per unit.
What are your thoughts on the reduction in CAKE's token supply? Feel free to share your opinions and insights in the comments section below.
Frequently Asked Questions
What amount should I invest in my Roth IRA?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. The account cannot be withdrawn from until you are 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, your principal (the deposit amount originally made) is not transferable. No matter how much money you contribute, you cannot take out more than was originally deposited to the account. If you take out more than the initial contribution, you must pay tax.
The second rule says that you cannot withdraw your earnings without paying income tax. You will pay income taxes when you withdraw your earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. The federal income tax on your earnings would amount to $3,500. That leaves you with only $6,500 left. The amount you can withdraw is limited to the original contribution.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types if Roth IRAs: Roth and Traditional. A traditional IRA allows for you to deduct pretax contributions of your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs don't allow you deduct contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal required, unlike a traditional IRA. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
What tax is gold subject in an IRA
The fair market value of gold sold is the basis for tax. You don't have tax to pay when you buy or sell gold. It's not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
Loans can be secured with gold. Lenders look for the highest return when you borrow against assets. For gold, this means selling it. It's not guaranteed that the lender will do it. They may keep it. Or, they may decide to resell the item themselves. You lose potential profits in either case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. Otherwise, it's better to leave it alone.
What is the value of a gold IRA
There are many advantages to a gold IRA. You can diversify your portfolio with this investment vehicle. You have control over how much money goes into each account.
You also have the option to roll over funds from other retirement accounts into a gold IRA. This makes for an easy transition if you decide to retire early.
The best part is that you don't need special skills to invest in gold IRAs. These IRAs are available at all banks and brokerage houses. Withdrawals can happen automatically, without any fees or penalties.
That said, there are drawbacks too. Gold is historically volatile. It's important to understand the reasons you're considering investing in gold. Are you looking for growth or safety? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. A single ounce isn't enough to cover all of your needs. You may need several ounces, depending on what you intend to do with your precious gold.
You don’t necessarily need a lot if you’re looking to sell your gold. You can even get by with less than one ounce. But, those funds will not allow you to buy anything.
Which precious metal is best to invest in?
This depends on what risk you are willing take and what kind of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if you need a quick profit, gold may not be for you. If patience and time are your priorities, silver is the best investment.
If you don’t desire to become rich quickly, gold may be your best option. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
How much of your portfolio should you hold in precious metals
First, let's define precious metals to answer the question. Precious elements are those elements which have a high price relative to other commodities. This makes them highly valuable for both investment and trading. Gold is today the most popular precious metal.
There are also many other precious metals such as platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also relatively unaffected both by inflation and deflation.
In general, all precious metals have a tendency to go up with the market. But they don't always move in tandem with one another. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors expect lower interest rate, making bonds less appealing investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. They are more rare, so they become more expensive and less valuable.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Which precious metals are best to invest in retirement?
The best precious metal investments are gold and silver. They are both easy to trade and have been around for years. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: Gold is one the oldest forms currency known to man. It's stable and safe. It is a good way for wealth preservation during uncertain times.
Silver: Silver is a popular investment choice. It's a great option for those who want stability. Unlike gold, silver tends to go up instead of down.
Platinum: This precious metal is also becoming more popular. Like gold and silver, it's very durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium: The catalytic converters use Rhodium. It is also used for jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium is similar to platinum, but it's less rare. It's also much more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. It's also a great way to diversify your portfolio. There is much more to gold than meets your eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It's often referred to as “the world's oldest currency.”
But unlike paper currencies, which governments create, gold is mined out of the earth. It's hard to find and very rare, making it extremely valuable.
The supply-demand relationship determines the gold price. When the economy is strong, people tend to spend more money, which means fewer people mine gold. The value of gold rises as a consequence.
The flip side is that people tend to save money when the economy slows. This means that more gold is produced, which reduces its value.
It is this reason that gold investing makes sense for businesses and individuals. You'll reap the benefits of investing in gold when the economy grows.
Additionally, you'll earn interest on your investments which will help you grow your wealth. In addition, you won’t lose any money if gold falls in value.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement funds
- Fraud Advisory: Precious Metals Fraud
By: Jamie Redman
Title: Pancakeswap Community Votes to Reduce CAKE Token Supply
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