PancakeSwap Launches Tokenomics 3.0 Upgrade, Targeting CAKE Supply Reduction and Sustainable Growth

PancakeSwap has begun rolling out its long-anticipated Tokenomics 3.0 upgrade for the CAKE token. As announced in a recent blog post, the upgrade will fully take effect on April 23, 2025. The new model phases out legacy features such as CAKE staking, veCAKE, gauge voting, revenue sharing, and farm boosting, replacing them with a buy-and-burn revenue-sharing approach while capping the total CAKE supply at 450 million. Daily emissions will be reduced in two stages; first from 29,000 CAKE to 20,000 CAKE and later to 14,500 CAKE, with an estimated 5.3 million CAKE permanently burned annually. Token holders will have six months to redeem their tokens at a 1:1 ratio once locked positions are unlocked. The upgrade has triggered debate, particularly with dissent from Cakepie DAO over the removal of decentralized governance features, prompting PancakeSwap to offer up to $1.5 million worth of CAKE in compensation for affected users. Meanwhile, CAKE has shown signs of recovery, trading at $2.01 with improved trading volume and a bullish RSI signal, indicating renewed investor confidence.