This proposal is a joint proposal of Vidocq Stoekenbroek and Sebabesse
Since Cake has become deflationary maximum supply has been reduced twice. Both time it brought very positive feedback from the market and gave support to Cake price.
This proposal suggests to link max supply to weekly or monthly supply decrease.
When supply decrease reached a defined threshold, for example 100,000 Cake weekly or 500,000 Cake monthly, max supply could be reduced by a defined quantity.
This quantity could be linked to the total amount of VeCake. For example for every 100,000 VeCake, 10 Cake is removed from Cake max supply. This would motivate long term holders to lock more for longer as it directly influences max supply.
This rule would be applicable only if there is a minimum 15% margin between total and max supply. In other words max supply decrease can only happen when total supply/max supply < 0.85
rather then mint new cake every block we stop all minting.
we then use the protocol profits to buy back cake from the open market, send 25% to the burn and use 75% to pay for gauge rewards and other parts of the ecosystem that currently get rewarded.
we then reduce the CAKE max supply to the current supply, and reduce it by the amount we burn each week going forward.
we would then have a reduction in the max supply each and every week. no matter what the markets are doing.
generally speaking, i dont really think the max supply number really matters, just seems more like a PR thing.
I like the idea! I think it should be on a quarterly basis because there are too many variables to be managed. So each quarter reduce the Max Supply according to the proportion of negative net mint.
Taking this opportunity, I think it would be good to have a similar mechanism for emissions and price. If the price goes up XX%, we will have a proportional reduction in emissions. So we keep burning(negative net mint) at the same current level, varying only by volume.
Any idea that supports the growth and power as well as the decrease in the total supply of Cake has my full support because I am a loyal hodler of this project since its inception. Therefore, it has my full support and is a very interesting idea, which should be implemented to increase the value of our precious Cake token. Success to everyone and with all faith in Pancakeswap and its team!