PancakesWap, the largest distributed exchange (DEX) in the BNB chain, has officially announced the implementation of Cake Tokenomics 3.0. This indicates a major shift towards a more sustainable and deflationary ecosystem.
According to the announcement, PancakesWap will begin rolling out a new talknomics model on April 23, 2025. The main goal is to curb cake inflation, optimize system efficiency, and provide long-term value to the community. However, the Cake 3.0 proposal sparked considerable debate.
What are the important changes to Cake Talk Nemics 3.0?
Pancakeswap sets three main goals for Tokonaemics 3.0. It achieves an annual deflation rate of 4%, eliminating complex mechanisms such as Vecake, reducing cake emissions and improving sustainability.
The specific changes are as follows:
Cake staking, becake, gauge voting, revenue sharing, and farm boost retirement: Pancakeswap cancels cake staking and becake mechanism. All locked cakes and becakes are unlocked. Burn mechanism to reduce circulating supply: Pancakeswap burns tokens to reduce supply rather than sharing transaction fees with users. The team expects to burn around 5.3 million cakes a year, supporting deflationary targets. Gradual reduction in cake emissions: Daily cake emissions will be reduced from 29,000 to 20,000, then to 14,500 tokens.
Users will take six months from April 23, 2025 to withdraw the previously locked cake.
Discussions about Cake 3.0
Several developers and community members believe that Cake Tokenomics 3.0 will benefit the project in the long term.
“Cake Tokenomics 3.0, at its core, protects cake holders by defending real value and strengthening the long-term foundation. This will allow us to actively reduce emissions, accelerate deflation and maintain value,” said Chef Philippe.
But not everyone agrees. Cakepie Dao (one of the biggest Vecake Holders) raised strong concerns about the X. They criticized the decision to eliminate Vecake, calling it untransparent, potentially damaging projects built around that model.
This reveals community disparities regarding the way Pancakeswap balances deflation with stakeholder interests.
“Sunset Becake is devastating for all projects built in the long-term alignment of cake pie and pancake wap. Our entire ecosystem is composed around becakes, locking cakes in as a clear show of four years of commitment for millions of years.
In response, Pancakeswap proposed a $1.5 million compensation package for cake tokens. If Cakepie agreed to allow a 1:1 swap from Mcake (Cakepie’s Cake Derivative) to Cake, they provided this to the CKP (Cakepie’s token) holder.
However, CakePie is currently voting to accept the offer or not.
At the time of reporting, Cake is trading at around $1.97, up 17% from April 8, when Pancakeswap first proposed Tokenomics 3.0.
Furthermore, Defillama’s data shows Pancakeswap’s 24-hour trading volume has surpassed Uniswap by over $1 billion.
Meanwhile, a report from Beincrypto reveals that Pancakeswap manages more than 90% of the BNB chain’s DEX market share. This highlights the strong relationship between the BNB chain and Pancakeswap.
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