PancakeSwap has begun implementing its long-anticipated Tokenomics 3.0 upgrade for the CAKE token.
In a blog post published on Apr. 21, the PancakeSwap (CAKE) team confirmed that key changes will go live on Apr. 23, 2025. Staking and governance via veCAKE will be discontinued as part of the update. Users will have six months to redeem their tokens at a 1:1 ratio after all locked CAKE and veCAKE positions are unlocked.
š„The official implementation of CAKE Tokenomics 3.0 is now underway. Here’s what you need to know about the changes and important dates:
Key Milestones:
š¹Retirement of CAKE Staking, veCAKE, Gauges Voting, Revenue Sharing, and Farm Boosting
š¹Voting results from Epoch 37 willā¦ pic.twitter.com/3mj2Hk08BYā PancakeSwap (@PancakeSwap) April 21, 2025
With Tokenomics 3.0, PancakeSwap switches to a buy-and-burn revenue-sharing model and imposes a hard cap of 450 million CAKE. There will be no more emissions from yield farms.Ā These changes are intended to reduce token inflation, encourage sustainable growth, and reward loyal users.Ā
The transition will happen in two stages. The daily emissions will drop from 29,000 CAKE to 20,000 CAKE, and finally to 14,500 CAKE. An estimated 5.3 million CAKE will be permanently burned annually as a result of this reduction.
The proposal to redesign PancakeSwap tokenomics has drawn criticism, especially from Cakepie DAO, a protocol based on the veCAKE model and one of the biggest CAKE holders. The DAO claimed that there were irregularities in the vote that approved the changes and criticized the removal of decentralized governance features.
Governance, Decentralization & the veCAKE Paradigm
To the PancakeSwap team ā particularly to those shaping the Tokenomics 3.0 proposal:
This is not a reaction. This is a reminder.
DeFi is not a destination ā it is a discipline.And governance is not a burden ā it is theā¦ pic.twitter.com/xq4lsR4di9
ā Cakepieš„š§āš³ (@Cakepiexyz_io) April 12, 2025
Cakepie DAO proposed modifying the system instead of removing it entirely. Their suggestions included rewarding high-performing pools and penalizing early exits. In response, PancakeSwap has offered up to $1.5 million worth of CAKE in compensation for Cakepie users if the Cakepie DAO agrees to a 1:1 redemption deal for mCAKE holders.
Despite the pushback, CAKEās market performance has shown signs of recovery. The token is trading at $2.01, up 0.7% in the last 24 hours, with daily volume up 36% to $78.6 million. PancakeSwapās 24-hour DEX volume also rose to $1.03 billion, surpassing Uniswapās $896 million, according to DeFiLlama data. Weekly trading volume, on the other hand, has risen 5%, compared to Uniswapās 39% decline.
On the technical side, CAKE appears to be recovering from a multi-week low of $1.60. The price is approaching the Bollinger Band midline, while the relative strength index has climbed to 53.95, crossing above the neutral threshold and signaling growing bullish momentum. A confirmed breakout above $2.05 may push the token toward the next key resistance at $2.50.
