PancakeSwap cuts CAKE max supply to 400M after unanimous community vote
PancakeSwap’s community voted unanimously to lower CAKE’s maximum supply cap from 450 million to 400 million via a Snapshot vote that recorded about 1.66 million votes in favor. The change follows the Tokenomics 3.0 update (April 2025), which retired veCAKE and cut daily emissions from ~40,000 CAKE to ~22,250 CAKE. CAKE was already net deflationary in 2025: total supply fell from ~380M to ~350M and circulating supply stood near ~347–350M at publication. The new 400M cap removes 50M CAKE from potential future issuance and does not affect current circulating supply; it reduces long-term dilution risk and clarifies supply expectations. PancakeSwap expects token burns under the revised framework to be funded from multiple revenue streams (estimated contributions include 15–23% of spot trading fees, 20% of perpetual trading profits and 20% of IFO fees). The protocol holds roughly 3.5M CAKE in an Ecosystem Growth Fund. Operational highlights from 2025 cited alongside the vote include multi-chain expansion (ten chains including Solana and Monad), new products (PancakeSwap Infinity, CAKE.PAD), >$2.36 trillion processed volume in 2025, a 629% increase in trading volume year-on-year, ~37.8% DEX market share and ~35.37M unique traders. CAKE was trading near $2.00 at publication (roughly +2% over 7 days, +4.75% over 30 days). For traders, the cap reduction lowers future inflation risk and strengthens long-term tokenomics, but immediate price reaction is likely limited absent broader market catalysts.
Neutral
The cap reduction is structurally bullish for CAKE’s long-term fundamentals because it removes 50M tokens from future issuance and follows earlier emission cuts that made supply net deflationary in 2025. That lowers dilution risk and improves scarcity expectations—positive for long-term holders and narrative-driven investors. However, the change does not alter circulating supply immediately and markets often price in predictable protocol governance moves. Historical responses to similar supply-side tweaks show muted short-term price action unless paired with broader market momentum or major demand catalysts. Given CAKE’s recent trading behavior (stable around $2) and the absence of immediate buy pressure tied directly to the cap change, the likely near-term price impact is limited. Therefore the overall market stance is neutral: bullish for long-term tokenomics but unlikely to produce an immediate significant rally without additional catalysts.