On April 8, PancakeSwap – the leading decentralized exchange – announced a discussion proposal for a new economic model for the CAKE token called "CAKE Token Economics 3.0" on the X (Twitter) platform. This proposal marks a strategic shift by PancakeSwap aimed at enhancing the long-term value of CAKE through a clear deflationary policy, changing ownership models, and optimizing the ecosystem.
According to the proposal, the core objective is to achieve approximately 4% deflation per year, equivalent to reducing the total CAKE supply by 20% by 2030. This is an effort to control token inflation, improve sustainability, and long-term attractiveness of CAKE.
One of the major proposed changes is the complete removal of CAKE staking mechanisms, veCAKE, Gauges voting, and revenue sharing – which were previously used to encourage users to lock CAKE and participate in governance. The removal of these models aims to move towards the concept of "true CAKE ownership" – allowing CAKE holders to have full decision-making power without depending on intermediate staking layers.
In parallel, PancakeSwap also proposes reducing the daily CAKE issuance – from around 40,000 CAKE to 22,500 CAKE per day. This reduction not only supports the deflationary goal but also creates a more efficient, sustainable ecosystem that aligns with the platform's new development stage.
The CAKE Token Economics 3.0 proposal is currently under discussion in the PancakeSwap community. If approved, this will be one of the most significant adjustments in CAKE's development history, directly affecting the supply management strategy, user incentive mechanisms, and long-term growth potential of the token.
