PancakeSwap Community Discusses To Reduce CAKE Max Supply

Source: CryptoTale Original Title: PancakeSwap Community Discusses To Reduce CAKE Max Supply Original Link:

CAKE Tokenomics 3.0

In April 2025, PancakeSwap confirmed the approval of CAKE Tokenomics Proposal 3.0. The update retired the veCAKE model and sharply reduced daily token emissions. Emissions fell from roughly 40,000 CAKE per day to about 22,500. Following the change, PancakeSwap reported a net burn of about 8.19% of CAKE’s total supply in 2025. Supply declined from around 380 million tokens at the start of the year to roughly 350 million.

The pattern of deflation has been ongoing since September 2023. Based on the protocol, the burning of tokens is the result of revenue generated from the sales of its products. The products include liquidity pools in the spot market, trading of futures contracts, and services for launching new tokens. Every source of income is connected to the process that lowers the total supply of CAKE.

Proposal to Reduce the Maximum Supply

Based on these trends, PancakeSwap’s Kitchen proposed reducing CAKE’s maximum supply to 400 million tokens. The team stated that the new cap would support all foreseeable protocol growth needs. The change would formalize a deflationary structure already visible on-chain.

The proposed cap would leave a buffer of about 50 million CAKE above current circulation. PancakeSwap stated it does not expect to use this buffer under normal conditions. However, the protocol may access it if unusual circumstances arise. PancakeSwap also disclosed the growth of its Ecosystem Growth Fund, which has accumulated roughly 3.5 million CAKE tokens. The protocol plans to use this reserve before considering any new emissions.

Community Feedback and Governance Process

Supporters of the proposal say a lower cap reduces inflation risk perceptions. They argue that a 400 million limit improves long-term supply clarity for CAKE holders. They also point to reduced emissions as evidence that new issuance is unlikely.

The discussion has gone around community forums and official governance channels. Stakeholders from different parts of the ecosystem expressed their support and reservations. If approved, the CAKE token contract will update only the maximum supply parameter. No changes to emission rates or burn mechanisms appear in the proposal. All existing Tokenomics 3.0 structures would remain in place.

PancakeSwap said it will continue discussions before scheduling an on-chain vote.