{"id":50429,"date":"2025-04-09T12:59:11","date_gmt":"2025-04-09T12:59:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/pancakeswap-cuts-cake-emissions-by-44-targets-20-supply-drop\/"},"modified":"2025-04-09T12:59:11","modified_gmt":"2025-04-09T12:59:11","slug":"pancakeswap-cuts-cake-emissions-by-44-targets-20-supply-drop","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/pancakeswap-cuts-cake-emissions-by-44-targets-20-supply-drop\/","title":{"rendered":"PancakeSwap cuts CAKE emissions by 44%, targets 20% supply drop"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<ul>\n<li>Daily emissions reduced from 40,000 to 22,500 CAKE.<\/li>\n<li>veCAKE governance and staking systems to be removed.<\/li>\n<li>CAKE price rose 12% to $1.78 after proposal announcement.<\/li>\n<\/ul>\n<p class=\"\" data-start=\"71\" data-end=\"536\">PancakeSwap <a href=\"https:\/\/forum.pancakeswap.finance\/t\/cake-tokenomics-proposal-3-0-true-ownership-simplified-governance-and-sustainable-growth\/1237\">has introduced<\/a> a sweeping overhaul of its CAKE tokenomics, aiming for a 20% reduction in total token supply by 2030.<\/p>\n<p class=\"\" data-start=\"71\" data-end=\"536\">The proposal, named CAKE Tokenomics 3.0, outlines a strategy focused on achieving a 4% annual deflation rate, cutting token emissions, and scrapping several existing mechanisms that previously governed staking, governance, and revenue distribution.<\/p>\n<p class=\"\" data-start=\"71\" data-end=\"536\">The platform&rsquo;s announcement triggered a 12% surge in CAKE&rsquo;s price, pushing it to $1.81.<\/p>\n<p class=\"\" data-start=\"71\" data-end=\"536\">The decentralised exchange&rsquo;s latest move reflects a major pivot away from its previous emissions and incentive structure.<\/p>\n<p class=\"\" data-start=\"538\" data-end=\"810\">Rather than promoting liquidity through staking rewards and governance voting, PancakeSwap is now concentrating on making CAKE a deflationary asset.<\/p>\n<h2 class=\"\" data-start=\"812\" data-end=\"855\">Emissions slashed to 22,500 CAKE per day<\/h2>\n<p class=\"\" data-start=\"857\" data-end=\"1227\">Under the new proposal, PancakeSwap plans to reduce CAKE emissions from 40,000 tokens daily to 22,500.<\/p>\n<p class=\"\" data-start=\"857\" data-end=\"1227\">This will be executed in three phases, with each step informed by market conditions.<\/p>\n<p class=\"\" data-start=\"857\" data-end=\"1227\">PancakeSwap will actively manage emissions using real-time data, shifting away from the previous model where emissions were influenced by community votes and locked token governance.<\/p>\n<p class=\"\" data-start=\"1229\" data-end=\"1636\">The proposal eliminates the veCAKE system, which allowed users to lock up tokens for voting rights and receive bribes from protocols.<\/p>\n<p class=\"\" data-start=\"1229\" data-end=\"1636\">PancakeSwap determined that this model resulted in inefficient emissions distribution, often rewarding low-volume pools disproportionately.<\/p>\n<p class=\"\" data-start=\"1229\" data-end=\"1636\">The new system will direct emissions based on pool performance and trading activity, reducing inefficiencies in the reward structure.<\/p>\n<h2>Revenue sharing scrapped<\/h2>\n<p class=\"\" data-start=\"1692\" data-end=\"2047\">To further support deflation, PancakeSwap will remove revenue sharing entirely. Instead of redistributing trading fees to users, the platform will allocate these funds toward burning CAKE tokens.<\/p>\n<p class=\"\" data-start=\"1692\" data-end=\"2047\">This aligns with PancakeSwap&rsquo;s objective of turning CAKE into a deflationary token, building on its 2023 performance where it reduced the total supply by 2.7%.<\/p>\n<p class=\"\" data-start=\"2049\" data-end=\"2401\">With the change, PancakeSwap aims to prioritise long-term value over short-term incentives.<\/p>\n<p class=\"\" data-start=\"2049\" data-end=\"2401\">The protocol noted that revenue previously earmarked for redistribution will now be redirected to support continuous CAKE burns.<\/p>\n<p class=\"\" data-start=\"2049\" data-end=\"2401\">This is expected to accelerate the reduction of circulating supply, targeting the 4% annual deflation rate consistently until 2030.<\/p>\n<h2>Staking and votes removed<\/h2>\n<p class=\"\" data-start=\"2451\" data-end=\"2846\">A key part of the CAKE Tokenomics 3.0 proposal is the complete removal of staking and governance mechanisms.<\/p>\n<p class=\"\" data-start=\"2451\" data-end=\"2846\">All locked CAKE will be unlocked immediately if the proposal passes, and users will have unrestricted access to their tokens.<\/p>\n<p class=\"\" data-start=\"2451\" data-end=\"2846\">The decision reflects a shift away from governance-led liquidity strategies, where users previously influenced reward distribution by voting for specific pools.<\/p>\n<p class=\"\" data-start=\"2848\" data-end=\"3181\">This structural shift means PancakeSwap will fully take over emission allocation, using internal data and analytics to identify where liquidity is most needed.<\/p>\n<p class=\"\" data-start=\"2848\" data-end=\"3181\">By ending bribes, voting, and long-term staking locks, the protocol intends to streamline user experience and ensure that CAKE distribution is based purely on market demand.<\/p>\n<h2>CAKE price up 12%<\/h2>\n<p class=\"\" data-start=\"3229\" data-end=\"3608\">Following the announcement, CAKE rose by 12% within 24 hours, trading at $1.78.<\/p>\n<p class=\"\" data-start=\"3229\" data-end=\"3608\">The market&rsquo;s reaction suggests growing investor confidence in the deflationary roadmap laid out by PancakeSwap.<\/p>\n<p data-start=\"3229\" data-end=\"3608\"><\/p>\n<p data-start=\"3229\" data-end=\"3608\">Source: <a href=\"https:\/\/coinmarketcap.com\/currencies\/pancakeswap\/\">CoinMarketCap<\/a><\/p>\n<p class=\"\" data-start=\"3229\" data-end=\"3608\">While price increases in reaction to tokenomics changes are not uncommon in crypto, sustained value typically depends on follow-through execution and broader user adoption of the changes.<\/p>\n<p class=\"\" data-start=\"3610\" data-end=\"3882\">The proposal was published on March 29, 2025, with PancakeSwap encouraging community feedback.<\/p>\n<p class=\"\" data-start=\"3610\" data-end=\"3882\">The final implementation will depend on the approval process, but the immediate unlock of staked tokens and the halving of emissions could start rolling out soon after approval.<\/p>\n<p class=\"\" data-start=\"3884\" data-end=\"4042\">The proposal and live updates have been posted on PancakeSwap&rsquo;s official X account <a class=\"\" href=\"https:\/\/twitter.com\/PancakeSwap\/status\/1909532322388754754\" target=\"_new\" rel=\"noopener\" data-start=\"3967\" data-end=\"4041\">@PancakeSwap<\/a>.<\/p>\n<p>The post <a href=\"https:\/\/coinjournal.net\/news\/pancakeswap-cuts-cake-emissions-by-44-targets-20-supply-drop\/\">PancakeSwap cuts CAKE emissions by 44%, targets 20% supply drop<\/a> appeared first on <a href=\"https:\/\/coinjournal.net\">CoinJournal<\/a>.<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/pancakeswap-cuts-cake-emissions-by-44-targets-20-supply-drop\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Daily emissions reduced from 40,000 to 22,500 CAKE. veCAKE governance and staking systems to be removed. CAKE price rose 12% to $1.78 after proposal announcement. PancakeSwap has introduced a sweeping overhaul of its CAKE tokenomics, aiming for a 20% reduction in [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":50430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/50429"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=50429"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/50429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/50430"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=50429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=50429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=50429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}