A critical governance decision has been made for the CAKE altcoin within the PancakeSwap ecosystem. A proposal aimed at reducing the maximum supply of the platform’s native token was approved with 100% of the vote.
New Maximum Supply Details
According to the accepted proposal, the maximum supply of CAKE will be reduced from 450 million units to 400 million units. Considering that the current circulating supply is approximately 350 million CAKE, there will be a buffer of approximately 50 million CAKE between the new upper limit and the circulating supply.
Background on Tokenomics Changes
The proposal text recalled the CAKE Tokenomic Proposal 3.0, implemented in April 2025. Under this update, the veCAKE model was retired, and the daily CAKE emission was reduced from approximately 40,000 to 22,250 units. Following these changes, a net burn of 8.19% occurred in the CAKE supply throughout 2025, reducing the total supply from approximately 380 million at the beginning of the year to around 350 million. Thus, it was stated that CAKE’s deflationary structure, which has persisted since September 2023, was maintained.
Future Growth and Supply Dynamics
The PancakeSwap team believes that, considering current supply dynamics, the new maximum supply of 400 million will be sufficient to meet all future growth needs of the protocol. Although there is a gap of 50 million CAKE between the new limit and the current supply, it was stated that this gap is not expected to be used and may only be activated in exceptional circumstances.
Furthermore, it was stated that the protocol has accumulated approximately 3.5 million CAKEs under the Ecosystem Growth Fund, and this resource will be used for growth needs before resorting to new emissions. Therefore, it was noted that the likelihood of PancakeSwap returning to an inflationary structure is quite low.