PancakeSwap Launches Tokenomics 3.0 Upgrade for CAKE
PancakeSwap has started rolling out its highly anticipated Tokenomics 3.0 upgrade for the CAKE token. The team announced on April 21 that significant changes will take effect on April 23, 2025. This update will phase out staking and governance through veCAKE.
Users have six months to redeem their tokens at a 1:1 ratio once all locked CAKE and veCAKE positions are unlocked. The upgrade introduces a buy-and-burn revenue-sharing model and sets a hard cap of 450 million CAKE. This aims to reduce token inflation and promote sustainable growth.
The transition will occur in two stages. Daily emissions will decrease from 29,000 CAKE to 20,000, and then to 14,500 CAKE. This will result in the annual burning of approximately 5.3 million CAKE.
Though, the proposal has faced criticism from Cakepie DAO, a major CAKE holder. They claim there were irregularities in the vote approving the changes and oppose the removal of decentralized governance features. Cakepie DAO suggested rewarding high-performing pools and penalizing early exits.
PancakeSwap has offered up to $1.5 million worth of CAKE to compensate Cakepie users if they agree to a 1:1 redemption deal for mCAKE holders. Despite the pushback, CAKE’s market performance is showing signs of recovery. The token is currently trading at $2.01, wiht a 0.7% increase in the last 24 hours.
PancakeSwap’s 24-hour DEX volume has risen to $1.03 billion, surpassing Uniswap’s $896 million. Weekly trading volume has also increased by 5%. Technically, CAKE is recovering from a multi-week low of $1.60. A confirmed breakout above $2.05 could push the token toward the next key resistance at $2.50.
