TL;DR

PancakeSwap will launch Tokenomics 3.0 on April 23 and will remove veCAKE; users will be able to recover their locked tokens until October.
Shared rewards and farm boosting will be discontinued; 15% of fees will now go to the CAKE burn mechanism.
Daily CAKE issuance will drop to 14,500 in two phases; the protocol expects to reduce inflation with an annual burn of around 5.3 million.

PancakeSwap, one of the best-known DEXs in the crypto industry, has announced the implementation of its new economic structure for the CAKE token, called Tokenomics 3.0, which will come into effect on April 23, 2025.

What Changes Will Tokenomics 3.0 Bring?

This update involves the removal of the veCAKE and Gauges Voting systems, which previously allowed users to participate in governance and determine reward distribution. Starting on the aforementioned date, all locked CAKE and veCAKE will be unlocked, and users will be able to redeem veCAKE for CAKE at a 1:1 ratio until October 23, 2025.

Additionally, the farm boosting and revenue sharing functions will be discontinued. The 5% of trading fees that was previously allocated to share revenue with users will now be redirected to the token burn mechanism, raising the burn rate from 10% to 15% in v3 pools. This move aims to reduce token inflation and promote more sustainable growth for the PancakeSwap ecosystem.

CAKE’s daily emission will also be reduced in two phases: initially from 29,000 to 20,000 tokens, and later to 14,500. These reductions are expected to result in the permanent burn of approximately 5.3 million CAKE per year, contributing to the development of a more deflationary supply.

Governance Concerns Within PancakeSwap

The proposed changes have sparked mixed reactions within the community. Some users expressed concerns about the removal of decentralized governance mechanisms, while others believe that simplifying the economic model could help stabilize the token and support its long-term value.

Users who delegated CAKE through managers like CakePie, StakeDAO, or Aster must use the interfaces provided by those services to redeem their tokens. It is essential that all participants review the specific instructions to ensure they recover their assets within the established timeframe.

With these modifications, PancakeSwap aims to adjust its economic model to current DeFi market dynamics, focusing on sustainability and operational efficiency.

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Filed under: News - @ April 21, 2025 2:26 pm