That’s false on so many levels. You’re completely overlooking the significant benefits and flexibility (not having to lock your Cake) of the SubDAOs, such as the revenue they generate for liquid Cake stakers and the voting incentives they provide. It is 100% accurate that SubDAOs permanently remove Cake from circulation because when you convert real Cake into wrapped Cake, the real Cake you hand over is permanently locked, meaning it’s permanently removed from circulation. This makes it a deflationary mechanism.
You also neglect to mention StakeDao and two other SubDAOs, all of which have the same deflationary mechanisms in place. And let’s not forget the elephant in the room: the unsustainable burn model. A burn-only mechanism struggles with scalability as the price of Cake increases, since the same volume will burn fewer tokens. In contrast, the veCake model becomes more effective as the price rises, attracting more bribes from ecosystem projects and better aligning incentives for long-term holders. This is an irrefutable advantage of the veCake model compared to a burn-only mechanism.