The R Roundup: The Big $CAKE Cut🥞- Issue #121

PancakeSwap's recent proposal to reduce the CAKE token supply by 300 million has received overwhelming support from its community with nearly 99.95% of the voting community, comprising 70,000 CAKE token holders, swiftly backed the proposition upon its introduction.

The decentralized autonomous organization (DAO) governing PancakeSwap initiated a vote to slash the maximum supply of CAKE from 750 million to 450 million tokens. This proposal, introduced on Thursday during early European hours, will continue until 8:00 am UTC on Friday. Should the proposal pass, the reduction in token supply is slated for implementation by January 4th, 2024.

This move aligns with PancakeSwap's proactive efforts to refine its tokenomics, emissions, and growth strategies. From enhancing CAKE Tokenomics v2.5 to unveiling the veCAKE Gauges System, PancakeSwap has continually evolved its ecosystem.

Having attained consistent deflation and aiming for ultrasound CAKE status, the proposal seeks to trim the total supply of CAKE to a maximum cap of 450 million tokens. Currently, at 388 million CAKE in circulation, this reduction aims to support market expansion across various chains and sustain the veCAKE model.

Blast Deposits Rockets To $1.1b💥

Blast, a forthcoming layer 2 blockchain developed by the creators of Blur, an NFT platform, has surged past $1.1 billion in deposits ahead of its scheduled launch in February.

Despite the platform's official release being months away, the promise of an airdrop slated for May has enticed users, drawing in substantial deposits.

Amid controversy surrounding its one-way bridge, the platform has seen $1 billion in staked ether (stETH) and $103 million in dai (DAI) stablecoin deposits since its website went live last month, as per DefiLlama. Depositors are offered a roughly 5% yield on staked assets along with "Blast Points," redeemable for an airdrop in May. Users can earn additional points through referrals.

Blur, the NFT marketplace by the same developers, had a similar airdrop in February, propelling the BLUR token's market cap to $500 million, marking a 23% increase in the past month.

However, this approach of accepting deposits pre-launch has drawn criticism within the crypto community. Some likened it to a pyramid scheme, emphasizing potential disproportionate benefits for early depositors and affiliates.

Even Blast's supporter, venture capitalist firm Paradigm, expressed concerns. Dan Robinson, Head of Research and General Partner at Paradigm stated discomfort with the pre-deposit strategy, citing that it overstepped boundaries. Despite this, he expressed enthusiasm for certain aspects of Blur.

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Vitalik’s PoS Design Proposals For Ethereum👨‍🎨

Ethereum co-founder Vitalik Buterin recently proposed three potential solutions to simplify the Proof-of-Stake (PoS) design within Ethereum, addressing concerns regarding network load and complexity.

Buterin highlighted the challenge of validators producing numerous cryptographic signatures to maintain the network's functionality, posing a burden on Ethereum's operational capacity. As more validators join, the volume of signatures escalates, intensifying strain on the system. Upcoming upgrades are anticipated to heighten these signature requirements significantly.

To mitigate this issue, Buterin outlined three strategies in a post on the Ethereum Research forum. One approach involves creating decentralized staking pools, necessitating a higher minimum amount of ether to run a validator. This would encourage validators to collaborate, consolidating their resources.

The second proposal revolves around implementing two tiers of stakers with differing requirements, categorizing them distinctively in the block finalization process.

The third solution suggests employing a rotating set of participants where a random selection of validators is chosen for each slot. While this approach distributes the workload and diminishes total signatures, Buterin acknowledged that it could introduce additional complexity to the system.

Avalanche Foundation Bidding Memecoins🛍️

The Avalanche Foundation, known for fostering the Avalanche blockchain ecosystem, is contemplating the acquisition of meme coins as a strategic move recognizing the unique niches within the cryptocurrency market.

This initiative emerges following the recent surge of tokens like bonk (BONK), which notably sparked a surge in Solana network activity.

Criteria for selecting meme coins will encompass factors such as holder count, liquidity thresholds, project maturity, fair launch principles, and social sentiment. The Foundation aims to utilize Culture Catalyst to procure specific Avalanche-based meme coins, curating a collection that embodies the cultural and enjoyable aspects represented by these tokens.

This effort complements the Foundation's existing engagement across the Avalanche ecosystem, broadening its portfolio to encompass various crypto assets, including NFTs and RWAs.

Notably, Avalanche-based meme coins such as COQ, husky (HUSKY), and shibx (SHIBX) have fluctuated in the past 24 hours following the Foundation's announcement, as per CoinGecko data.

While meme coins often face skepticism within the blockchain community, their recent success led by tokens like dogecoin (DOGE) and shiba inu (SHIB) suggests a shifting perception. December witnessed a surge in the price of bonk, driving volumes on Solana-based DEXs, challenging Ethereum's typically dominant position.

The trend extended to Avalanche in mid-December, with the rise of Coq Inu (COQ) and dog-themed tokens like kimbo (KIMBO). Notably, a trader reportedly obtained $450 worth of COQ shortly after its launch, seeing a meteoric rise to over $2.5 million.

The Foundation views these meme coins as more than utility assets, recognizing them as representations of diverse crypto communities' collective spirit and shared interests inspired by internet culture and humor.

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