PancakeSwap (CAKE) Implements Tokenomics 3.0 Upgrade, Retiring veCAKE and Introducing a Buy-and-Burn Model

In a blog post published on Apr. 21, the PancakeSwap (CAKE) team confirmed that key changes will go live on Apr. 23, 2025.

PancakeSwap has begun implementing its long-anticipated Tokenomics 3.0 upgrade for the CAKE token.

The official integration of Tokenomics 3.0 is now underway. Here's what you need to know about the changes and important dates:

Key Milestones:

🔹Retirement of CAKE Staking, veCAKE, Gauges Voting, Revenue Sharing, and Farm Boosting

🔹Voting results from Epoch 37 will be fully implemented on April 23 at 00:01 (GMT+8).

🔹A six-month window will open for users to redeem their mCAKE and veCAKE at a 1:1 ratio after all locked CAKE and veCAKE positions are unlocked.

The upgrade aims to reduce token inflation, encourage sustainable growth, and reward loyal users. It will transition PancakeSwap to a buy-and-burn revenue-sharing model and set a hard cap of 450 million CAKE.

Tokenomics 3.0 will also see the daily emissions reduced from 29,000 CAKE to 20,000 CAKE, and finally to 14,500 CAKE. This reduction will result in an estimated annual burning of 5.3 million CAKE.

Earlier this year, PancakeSwap unveiled plans to overhaul its token economic model, shutting down its veCAKE-based governance system and introducing a new governance token.

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 — particularly to those shaping the Tokenomics 3.0 proposal:This is not a reaction. This is a reminder.DeFi is not a destination — it is a discipline.And governance is not a burden — it is the apex of power.The proposal to modify PancakeSwap’s token economic model has drawn criticism, especially from Cakepie DAO. The protocol, which is based on the veCAKE model and one of the biggest CAKE holders, claimed that there were irregularities in the vote that approved the changes. They also criticized the removal of decentralized governance features.

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, CAKE’s 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 increasing 36% to $78.6 million.

PancakeSwap’s 24-hour DEX volume has also risen to $1.03 billion, surpassing Uniswap’s $896 million, according to DeFiLlama data. However, weekly trading volume has increased 5%, compared to Uniswap’s 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 increasing bullish momentum. A confirmed breakout above $2.05 may push the token toward the next key resistance at $2.50.