PancakeSwap Plans To Cut CAKE Max Supply To 400M: Details

PancakeSwap has proposed reducing CAKE’s maximum supply from 450 million to 400 million CAKE, citing sustained token burns and tighter emissions under its Tokenomics 3.0 framework. The proposal aims to align the protocol’s long-term supply limits with its current deflationary trend and recent changes to how CAKE is issued and burned.

What Is PancakeSwap Proposing And Why Now?

The proposal follows the rollout of CAKE Tokenomics 3.0 in April 2025. Under this system, PancakeSwap retired the veCAKE model and cut daily CAKE emissions from about 40,000 tokens to roughly 22,500. This single change materially altered supply dynamics.

According to PancakeSwap, the reduced emissions led to a net burn of about 8.19% of CAKE’s total supply during 2025. At the start of the year, CAKE’s supply stood near 380 million. It has since dropped to around 350 million, continuing a deflationary trend that began in September 2023.

Given this data, the PancakeSwap team, often referred to as “the Kitchen,” argues that the existing 450 million cap no longer reflects how the protocol operates. The proposed 400 million ceiling is positioned as a more realistic upper bound that still leaves room for operational flexibility.

How Much Would CAKE’s Supply Be Reduced?

The adjustment is straightforward and numerical.

• Current maximum supply: 450,000,000 CAKE
• Proposed maximum supply: 400,000,000 CAKE
• Reduction amount: 50,000,000 CAKE

This change affects only the hard cap, not the current circulating supply. With about 350 million CAKE already in circulation, the new limit leaves a buffer of roughly 50 million tokens.

PancakeSwap states that it does not expect to use this buffer under normal conditions. However, the team has left room for extreme or unforeseen circumstances, where limited additional issuance could be required.

How Tokenomics 3.0 Changed CAKE Supply Dynamics

Tokenomics 3.0 marked a shift away from earlier incentive-heavy designs. The veCAKE model, which required locking tokens for voting power and rewards, was removed. In its place came a simpler structure focused on controlled emissions and consistent burns.

PancakeSwap targets an annual deflation rate of at least 4% and a total CAKE supply reduction of about 20% by 2030. This is achieved through a buy-back-and-burn model funded by protocol revenue.

Burns are tied directly to activity across PancakeSwap’s products.

• Spot liquidity pools contribute between 15% and 23% of trading fees to burns.
• Perpetual trading sends 20% of all profits to burns.
• Initial Farm Offerings and their replacement mechanisms burn 100% of participation fees.
• Prediction and Lottery products burn 3% from each round.

Emissions still exist, but they are more tightly managed and directed only to areas the protocol considers productive.

Products that continue to receive CAKE emissions include multichain farms, the lottery system, and ecosystem growth initiatives.

Why PancakeSwap Says Inflation Is Unlikely To Return

A key argument in the proposal is that PancakeSwap no longer relies on inflationary emissions to fund development or liquidity. The Ecosystem Growth Fund now holds about 3.5 million CAKE, accumulated without expanding supply.

The team states that this fund will be used to cover future growth needs before any increase in emissions is considered. As a result, reverting to an inflationary model is described as unlikely under the current structure.

This approach mirrors broader trends across decentralized exchanges, where reliance on constant token issuance has been reduced in favor of revenue-backed incentives.

How CAKE Burns Are Verified On-Chain

PancakeSwap also outlined how users can independently confirm CAKE’s circulating supply, an important transparency point.

To verify the supply:

• Visit the CAKE token contract on BscScan.
• Check how much CAKE is held at the burn address. Tokens sent there are permanently removed.
• Subtract the burned amount from the total supply shown on BscScan.

How CAKE.PAD Fits Into The Broader Tokenomics Shift

The supply proposal comes months after another major change. In October, PancakeSwap replaced its Initial Farm Offering system with CAKE.PAD.

CAKE.PAD changed how users access early-stage tokens and how CAKE is used in the process.

Under CAKE.PAD:

• Users only need to hold CAKE in a noncustodial wallet.
• There are no staking pools or token lockups.
• Participation fees are permanently burned.

Key features include early access to tokens before exchange listings, flexible commitments with no caps, and a tiered subscription tax during oversubscription periods.

The first CAKE.PAD event featured WhiteBridge Network (WBAI). More than 67 million CAKE, valued at roughly $221 million at the time, was committed. All participation fees from the event were burned, reinforcing the deflationary design.

What Happens Next For The Proposal?

The proposal is currently open for community feedback. PancakeSwap has stated it will maintain an open dialogue before moving forward with an official on-chain vote.

If approved, the maximum supply parameter in CAKE’s token contract would be updated to reflect the new 400 million cap.

No other changes to emissions or burn mechanisms are included in this proposal.

Resources

PancakeSwap’s proposal to reduce CAKE’s maximum supply to 400 million formalizes a deflationary trend already visible on-chain. Tokenomics 3.0 has tightened emissions, delivered consistent burns, and replaced complex incentive models with a revenue-backed framework. 

The change leaves a modest buffer while aligning the hard cap with long-term deflation targets. For holders, this means clearer limits on supply without affecting current balances or daily operations.

Resources

1. PancakeSwap on X: Posts in January, 2026

2. PancakeSwap proposal: Discussion of Proposal to Reduce CAKE Token 

3. PancakeSwap docs: CAKE Tokenomics 3.0 Overview

4. Blog article by PancakeSwap: Introducing CAKE.PAD (Formerly IFO): Simplifying Early Token Access Events with CAKE