BakeryToken (BAKE) – All you need to know

What is BakeryToken?

It’s the native cryptocurrency of the BakerySwap exchange platform. BakerySwap is an automated market maker, which means it uses a formula to set prices for each coin that it offers, and it pays out the BakeryToken (also known as BAKE) as a reward to users who provide the liquidity to make and take trades on the platform.

Along with those rewards, BakeryToken holders also get the opportunity to use the NFT (non-fungible token) marketplace on the BakerySwap exchange. That means you can spend BAKE on digital purchases like artwork or gaming accessories.

BakerySwap launched in late 2020 and its token was released at the same time. It was built to rival Uniswap, another decentralised exchange, and differs by offering cheaper transaction fees along with higher rewards for its token holders.

How does BakeryToken work?

It works by storing a history of all its transactions on the blockchain, a public ledger that replaces the need for a central authority to control the movement of money. As well as storing the financial transactions, the BakerySwap blockchain uses a series of formulas known as ‘smart contracts’ to spit out prices for each coin on the platform.

These smart contracts are based on how much of each coin the platform has access to. To encourage people to provide these coins, BakerySwap uses the same principle as a bank that pays interest on money in a savings account, by offering a reward to anyone who stores their BakeryTokens on the platform. 

The other feature that makes it stand out is the blockchain it uses. Uniswap is based on the Ethereum blockchain, where transaction fees are notoriously high (blockchain fees are a bit like ordering an Uber: demand at peak times causes bottlenecks that send the price soaring). BakerySwap uses the Binance Smart Chain instead, which reduces those bottlenecks and is faster and cheaper as a result.

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