In the last year, PancakeSwap underwent a significant transformation in its tokenomics, emissions, and growth strategies. From improving CAKE Tokenomics v2.5 to the recent launch of the veCAKE Gauges system, the platform is in a strong position to continue expanding across all deployments.
After achieving consistent deflation for several months and focusing on accelerating the journey towards “ultrasound CAKE,” a proposal was presented to reduce the total supply of CAKE tokens to a maximum of 450 million. With the current circulating supply at 388 million CAKE, it is considered that this new lower cap will be sufficient to gain market share across all chains and sustain the veCAKE model.
The main reason behind this proposal is to provide certainty to the community regarding the future supply of CAKE tokens. When PancakeSwap was launched in 2021, certain incentives were established to bootstrap the ecosystem. However, after almost three years of development, more accurate estimations of the incentives required for growth are now available.
The reduction in the total token supply is also presented as a key step in accelerating the journey towards ultrasound CAKE. Emphasis is placed on the importance of this metric in understanding the impact of token burns and future emissions. The intention is to clearly signal PancakeSwap’s shift away from a hyperinflationary tokenomics model.
The community’s proposal to reduce the token supply had a very positive effect on the CAKE price. According to the latest data published on CoinMarketCap, it is currently trading at $2.59 per unit. Its price experienced a sudden jump, growing by approximately 18.45% in the last few hours, rising from $2.2 to the current price. Additionally, its trading volume is increasing, currently reaching a 180% increase, surpassing $197 million, while the market capitalization is nearly $634 million, up by 18%.
PancakeSwap Community Proposes to Reduce Token Supply from 750 to 450 Million
In addition, the presented proposal aims to ensure sufficient flexibility for future growth. Establishing a limit of 450 million CAKE is considered reasonable to secure an adequate supply for future expansions, such as gaining market share on Ethereum, Ethereum L2, and new initiatives like position managers.
In concrete terms, the proposal outlines a decrease in the current total supply of 750 million CAKE to a future maximum of 450 million CAKE. The implementation of this adjustment involves simply reducing the maximum token supply limit.
The forum serves as an open space for discussion, allowing community members to express their opinions and suggestions before the proposal goes to a vote. Active community participation is crucial to enrich the decision-making process and ensure that the evolution of CAKE’s tokenomics reflects collective interests and visions.