PancakeSwap Launches Tokenomics 3.0 Upgrade for CAKE
PancakeSwap is rolling out its Tokenomics 3.0 upgrade for the CAKE token. The update, announced on April 21, will take effect on April 23, 2025. This major change will end staking and governance thru veCAKE.
Users have six months to redeem their tokens at a 1:1 ratio once all locked CAKE and veCAKE positions are unlocked. The upgrade aims to shift to a buy-and-burn revenue-sharing model and set a hard cap of 450 million CAKE. The goal is to reduce token inflation and promote sustainable growth.
Key changes include:
- Retirement of CAKE staking, veCAKE, and related features.
- A two-stage reduction in daily emissions, from 29,000 to 14,500 CAKE.
- An estimated 5.3 million CAKE will be burned annually.
The transition will cut daily emissions and permanently burn tokens. this shoudl reward loyal users and stabilize the token’s value. The team hopes this will encourage long-term growth.
However,the move has faced criticism. Cakepie DAO, a major CAKE holder, opposes the changes. They argue the vote was unfair and that decentralized governance features are being removed.
Despite the controversy, CAKE’s market performance shows promise. The token is now trading at $2.01, up 0.7% in 24 hours. Daily trading volume is up 36% to $78.6 million.
Tokenomics 3.0 introduces a hard cap of 450 million CAKE.No new emissions will come from yield farms. The team offered $1.5 million in CAKE as compensation for affected users. The upgrade will discontinue staking and veCAKE.The team believes this will stabilize the token’s value. The transition will happen in two stages, reducing daily emissions. The team offered $1.5 million in CAKE to Cakepie DAO users. The token’s price is rising, wiht a 36% increase in daily volume. PancakeSwap’s 24-hour DEX volume hit $1.03 billion, beating Uniswap’s $896 million.
Some users are unhappy. Cakepie DAO claims the vote was flawed. They suggest rewarding high-performing pools and penalizing early withdrawals. PancakeSwap’s 24-hour DEX volume surpassed Uniswap’s. The price is recovering from a recent low. The token’s price is approaching a key resistance level.
