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PancakeSwap approved an 11% reduction of CAKE’s maximum supply from 450 million to 400 million CAKE on Monday. The firm revealed that adjusting its CAKE max supply reinforces its long-term sustainability and a deflation-first future for PancakeSwap.
On-chain voting data showed unanimous support from the PancakeSwap community, with more than 1.66 million voting in favor and none opposing. Voting to reduce the maximum supply of CAKE ran on Snapshot from Friday to Monday, following the company’s shared proposal for discussion.
PancakeSwap’s initiative follows CAKE Tokenomics 3.0
🗳️ The CAKE Max Supply Reduction Proposal has passed!
✅ Max supply has now been adjusted to 400M CAKE
🙏Thank you to our community for the thoughtful discussion and votes
With CAKE’s max supply reduced to 400M, we’re reinforcing long-term sustainability and a… https://t.co/9wzsGbcbOl
— PancakeSwap (@PancakeSwap) January 19, 2026
The firm stated that the initiative followed the rollout of CAKE Tokenomics 3.0, which was implemented back in April. The proposal retired the veCAKE model, reducing the token’s daily emissions.
On-chain data showed that CAKE’s daily emissions dropped from roughly 40,000 to around 22,250 tokens. CAKE’s token supply also achieved a net burn of about 8.19% in 2025.
CAKE’s total supply in 2025 dropped from 380 million at the beginning of the year to approximately 350 million. The drop extended PancakeSwap’s deflationary momentum that has persisted since September 2023.
PancakeSwap’s deflationary momentum follows its December 2023 governance vote approval, which lowered CAKE’s max supply from 750 million to 450 million tokens. The firm argued that a lower maximum supply of CAKE reflects plans for incentives, development, and ecosystem growth.
At the time of publication, CAKE’s circulating supply stood at approximately 347.50 million tokens. The data suggests that the new 400 million maximum supply cap does not immediately constrain circulating supply or force any token removals.
The firm also acknowledged that the initiative’s impact is forward-looking. PancakeSwap effectively removing 50 million CAKE tokens from potential future issuance reduces the overall dilution risk.
The non-custodial exchange revealed that burns will be generated through multiple revenue streams under the new framework. The firm expects 15-23% of burns to be generated from spot trading fees, 20% from perpetual trading profits, and 20% from fees on initial farm offerings.
The decentralized exchange also revealed that it currently holds about 3.5 million CAKE in its Ecosystem Growth Fund. PancakeSwap stated that the tokens can be utilized for future initiatives before any additional emissions are considered. The firm’s Business Lead, ChefMaroon, acknowledged that the tokens in the firm’s fund suggest a lower probability of CAKE returning to a sustained inflationary phase under the current framework.
“We don’t foresee we’ll have inflationary CAKE any time soon, given our performance over the past 2 years, but knowing that our smart contract will consistently give out X amount of CAKE per day to our LPs as a whole gives them long-term confidence that this is a good place to provide liquidity.”
–ChefMaroon, Business Development Lead at PancakeSwap.
At the time of publication, CAKE is trading around $2.003, up nearly 2% over the last 7 days. The virtual asset has also surged by approximately 4.75% in the last 30 days. CAKE is still trading well below its late-2024 highs, suggesting that although supply-side changes can improve long-term fundamentals, they don’t necessarily translate into short-term price appreciation.
PancakeSwap records a surge in trading volume in 2025
Cryptopolitan previously reported that the decentralized exchange expanded across ten blockchain networks in 2025. PancakeSwap saw new deployments on the Solana and Monad blockchains, among others.
The non-custodial exchange also launched PancakeSwap Infinity, an upgrade that features customizable liquidity pools. The firm later introduced a token access platform, CAKE.PAD. The platform has already hosted three oversubscribed sales, collectively burning about 157,000 CAKE.
On-chain data revealed that the exchange processed more than $2.36 trillion in trading volume last year. PancakeSwap also recorded a 629% surge in trading volume in 2025.
The firm became the largest decentralized exchange by trading volume in 2025, with a 37.84% market share. PancakeSwap also recorded 35.37 million unique traders last year, a 147% YoY increase.
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