PancakeSwap Community Discusses To Reduce CAKE Max Supply
- The community is reviewing a plan to reduce CAKE max supply after emissions dropped.
- Tokenomics 3.0 lowered daily CAKE output and sustained a long-running deflation cycle.
- The proposal changes only the supply cap and leaves emissions and burn systems intact.
The PancakeSwap community is debating a governance proposal to reduce CAKE’s maximum supply from 450 million to 400 million. The discussion follows recent tokenomics changes that lowered emissions and produced consistent net burns. The proposal seeks to align CAKE’s hard cap with its current circulating supply and long-running deflationary trend.
The proposal went around community forums and official governance channels. Stakeholders from different parts of the ecosystem expressed their support and reservations. Meanwhile, the protocol is still considering the issue of long-term supply limits and growth strategies.
Tokenomics 3.0
In an April 2025 blog post, 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 going on since September 2023. Based on the protocol, the burning of tokens is the result of the revenue generated from the sales of its products. The products are 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. Still, 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.
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The pattern of deflation has been taking place since September 2023. The products are the liquidity pools in the spot market, trading futures contracts, and services for launching new tokens. Every source of income is connected to the process that lowers the total supply of CAKE. PancakeSwap said it will continue discussions before scheduling an on-chain vote.
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. The discussion continues across PancakeSwap governance channels.
