A proposal from a certain DEX community: The maximum supply of CAKE will be adjusted from 450 million to 400 million, continuing the deflationary trend.

【Chain Wen】A recent proposal from a leading DEX community has attracted attention—they plan to reduce the maximum supply of CAKE from 450 million to 400 million.

This adjustment is actually supported by data. Since implementing a new tokenomics model in April last year, the daily emission has dropped from 40,000 to around 22,500. What has been the result? Approximately 8.19% of the supply has been burned throughout the year. The circulating supply has also decreased from 380 million at the beginning of the year to about 350 million, maintaining a deflationary trend.

The proposers’ logic is as follows: a new cap of 400 million is sufficient to cover all future growth needs of the protocol. Additionally, the ecosystem growth fund has already accumulated about 3.5 million CAKE to support protocol development. Based on these factors, they believe the protocol is unlikely to re-enter an inflation phase.

It’s worth noting that this adjustment will leave a buffer of about 50 million CAKE between the circulating supply and the new cap, though the team does not expect to use it. The entire logical chain is quite clear—maintaining token scarcity through continuous deflation while ensuring the ecosystem has enough resources to continue developing.