PancakeSwap 3.0 Tokenomics Proposes 20% CAKE Supply Cut by 2030
Key Takeaways:
- PancakeSwap is putting forward a new tokenomics model aiming for 4% annual deflation and a 20% CAKE supply cut by 2030.
- To support this goal, the platform will retire veCAKE, staking, and revenue sharing — unlocking all CAKE for holders.
- Daily emissions will be reduced by over 40%, and the saved emissions will be redirected toward CAKE burns to improve efficiency.
PancakeSwap has announced its Tokenomics 3.0 proposal, targeting 4% annual deflation and a 20% CAKE supply cut by streamlining staking and redirecting emissions to high-volume, real-use pools.
Ending veCAKE and Gauges Voting: Simpler System, Smarter Allocation
The gauged voting system—launched originally to incentivize long-term CAKE locking through bribe-based voting—would retire if this proposal passes.
Some very highly bribed pools received more than 40% of total emissions but contributed less than 2% of CAKE burned, a clear mismatch in value. Users found the model too complex and poorly aligned with real market needs.
The gradual discontinuation of veCAKE and direct emissions voting means that PancakeSwap can transition to direct emissions management which will enable real-time scaling for emissions based on volume and pool performance. The team anticipates this change will increase liquidity efficiency by 30–40%.
True Ownership Returns to Users
Lock-up CAKE and veCAKE: All staked CAKE and veCAKE will be unlocked without penalty, no matter how long it was originally locked for. PancakeSwap will also allow users to redeem or unstake for up to six months through its platform, supporting a more decentralized, freer model. A major shift for PancakeSwap, which has had no VC funding or team allocations — reinforcing its belief in community ownership. CAKE holders can now stake directly for governance, liquidity, and IFOs. Direct staking creates a more intuitive user experience and better aligns incentives with real participation.
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