- PancakeSwap Launches Tokenomics 3.0, Discontinues veCAKE Staking.
- New Buy-and-Burn Model Reduces CAKE Emissions, Caps Supply.
- CAKE Price Rises 0.7%, Market Performance Improves.
PancakeSwap’s native CAKE token starts tokenomics 3.0 on the implementation, signalling the first stage of the long-awaited upgrade for one of the most used decentralised exchanges for PancakeSwap.
In an official blog post released on April 21, PancakeSwap confirmed that the core elements of the Tokenomics 3.0 update were slated to go live on April 23, 2025. Staking and governance on veCAKE will be discontinued among the most notable changes. After the unlocking of all of their locked and veCAKE positions, users will be given a six month window to redeem their tokens on a 1:1 basis.
PancakeSwap Tokenomics 3.0 Introduces Revenue-Sharing Buy-and-Burn
PancakeSwap enters the Revenue-sharing buy-and-burn with the launch of Tokenomics 3.0, which has a hard supply cap of 450 million CAKE. In addition, the platform will stop any other emissions from its yield farming program. These changes are to cut back token inflation, prolong the ecosystem’s sustainability, and reward contributors to the community.
The rollout will be in two phases, decreasing daily CAKE emissions from 29,000 CAKE to 20,000 CAKE and then to 14,500 CAKE. If the cut on this emission is realised, it will commit (at least temporarily) to permanently burning about 5.3 million CAKE tokens yearly.
But the overhaul has not been uncontested. However, CAKE’s greatest critic appears to be Cakepie DAO, a protocol dependent on the same veCAKE model and one of CAKE’s most significant stakeholders by vote share. It said that an irregularity occurred during the governance vote approving the changes, and that removing decentralized governance features.
CAKE Price Climbs 0.7%, Volume Surges 36%
For this reason, the Cakepie DAO proposed alternative changes to the system, such as rewarding bullish pools that do well and penalising pools that remove significantly and early. Following the backlash, PancakeSwap has offered up to $1.5 million CAKE compensation to Cakepie users, but only if the Cakepie DAO agrees to swap 1:1 mCAKE to redeem their funds.
While the dispute continues, CAKE’s market indicators have displayed positive signs. Nevertheless, over the last 24 hours, the token has gained 0.7% in percentage terms, pushing the price to $2.01 while the daily trading volume surged by 36% to $78.6 million. Meanwhile, PancakeSwap’s DEX volume on a 24-hour level increased to $1.03 billion, surpassing Uniswap’s $896 million, according to DeFiLlama data. Whereas Uniswap’s weekly trading volume declined by 39%, PancakeSwap witnessed an expansion of 5%.
In terms of a technical view, CAKE seems to be bouncing off a multi-week low of $1.60. The Relative Strength Index (RSI) has just crossed above the neutral 50 threshold at 53.95, indicating some growing bullish sentiment, and the token is approaching the midline of its Bollinger Bands. If CAKE verifies a breakout above the $2.05 resistance level, it could reach the following key target of $2.50.
