PancakeSwap limits the maximum supply for the CAKE token

PancakeSwap has approved an 11% reduction in the maximum supply of CAKE, lowering the cap from 450 million to 400 million tokens, to strengthen the long-term development strategy focused on deflation. This decision received overwhelming support from the community through an on-chain vote on Snapshot, with over 1.66 million votes in favor and no votes against.

This move follows the implementation of CAKE Tokenomics 3.0 in April, when the veCAKE model was eliminated and the daily issuance was significantly reduced from approximately 40,000 to 22,250 CAKE. As a result, CAKE is projected to have a net burn rate of about 8.19% in 2025, with the total supply decreasing from 380 million to around 350 million tokens.

Removing 50 million CAKE from future issuance helps mitigate long-term dilution risks without affecting the current circulating supply. Tokens will continue to be burned from various revenue sources such as spot trading fees, profits from perpetual contracts, and fees from initial farm programs.