Journalist
Posted:
- PancakeSwap will launch voting-escrowed CAKE (veCAKE) and voting meters in a few days.
- CAKE has become increasingly widespread in recent days.
Members of the PannenkoekSwap [CAKE] The governance community voted overwhelmingly for one proposal to introduce vote-locked CAKE (veCAKE) and voting meters.
📣 Proposal for launching veCAKE 🔒
🥞We propose to launch veCAKE in the coming days
🗳 Read the proposal and cast your vote for FREE: https://t.co/UYllbjpAEw pic.twitter.com/yayJpqJ2FE
— PancakeSwap🥞Everyone’s favorite DEX (@PancakeSwap) November 21, 2023
According to the proposal, the leading decentralized exchange plans to launch veCAKE to improve governance for CAKE holders, increase liquidity in various pools and increase rewards for CAKE stakers.
First introduced by Curve Finance [CRV], the vote-escrowed model incentivizes holders to lock their tokens for longer periods. In exchange for the locked tokens, users will receive “five” tokens. These grant them more voting rights and protocol rewards.
On the other hand, voting meters introduce a mechanism for allocating protocol-generated rewards to specific liquidity pools.
By allowing the community to directly influence the reward distribution, voting meters allow users to direct liquidity to pools that match their preferences.
Through its voting meters, PancakeSwap seeks to give CAKE holders the right to decide CAKE’s future corporate issuance across the protocol’s liquidity pools.
As stated in the proposal, the voting meters will be deployed in phases, starting with liquidity pools on BNB Chain [BNB]Ethereum [ETH]and Arbitrum [ARB]with approximately 0.99 CAKE per block in rewards.
With voting ending in a few hours, 99.48% of community members have voted in favor of the proposal.
CAKE makes some gains
At the time of writing, the protocol’s native token was exchanging hands at $2.38. In the last 24 hours, the volume of the alt has decreased by more than 10%. In the same period, trading volume increased by 4%, data from CoinMarketCap.
This creates a price/volume divergence when an asset’s price and volume movements move in opposite directions. In the case of CAKE, this difference indicates that despite the market activity, the activity is mainly on the sell side.
The positioning of a number of key momentum indicators on a 24-hour chart lends credibility to this position.
At the time of writing, CAKE’s On-Balance Volume (OBV) was trending down – a position it has maintained since November 15. CAKE’s OBV decline over the past week indicates a steady decline in token accumulation among spot market participants.
Read PancakeSwap [CAKE] Price prediction 2023-24
Likewise, the Aroon Up Line (orange), moving closer to the midline, marked a continued reversal of October’s price uptrend.
At the time of writing, CAKE’s Money Flow Index (MFI) has slowly moved towards its neutral line. This showed that selling activity continued to outpace buying activity at the time of writing.
Source: CAKE/USDT on TradingView
