The post PancakeSwap introduces vote to reduce max supply in deflationary push appeared on BitcoinEthereumNews.com. Decentralized exchange PancakeSwap has openedThe post PancakeSwap introduces vote to reduce max supply in deflationary push appeared on BitcoinEthereumNews.com. Decentralized exchange PancakeSwap has opened

PancakeSwap introduces vote to reduce max supply in deflationary push

Decentralized exchange PancakeSwap has opened a community discussion on a proposal to reduce the maximum supply of its CAKE token by 50 million units.

The proposal, which was announced on the platform’s governance forum on Tuesday, January 13, 2026, would see the hard cap on CAKE tokens decrease from 450 million to 400 million, representing an 11% reduction in the maximum supply.

PancakeSwap reportedly achieved a net deflation rate of 8.19% in 2025, where it reduced CAKE’s circulation supply from 380 million tokens at the start of the year to around 350 million.

PancakeSwap goes full send on deflationary model

PancakeSwap made reforms to its tokenomics in April 2025. Around that period, PancakeSwap retired its veCAKE staking model and slashed daily emissions from around 40,000 to 22,500 tokens.

The platform stated that because of the change, it “attained a net burn of ~8.19% of CAKE’s token supply in 2025, reducing it from 380M at the start of the year to ~350M now, maintaining CAKE’s deflationary streak since Sep 2023, with no signs of stopping soon.”

Under the current framework, burns are generated through multiple revenue streams, including 15 to 23% of spot trading fees, 20% of perpetual trading profits, and all fees from initial farm offerings.

According to ChefMaroon, the business development lead at PancakeSwap, who shared the proposal, “While this still leaves ~50M CAKE between the current circulating supply (~350M) and the new max supply (400M), this is a buffer that we don’t foresee ourselves needing to use, though if extenuating circumstances require, we may still tap on.”

The platform has accumulated approximately 3.5 million CAKE in an Ecosystem Growth Fund, and it states that “this can and will be used for the protocol’s growth needs before any additional emission is even considered,” adding that “it is unlikely that the protocol will ever revert to an inflationary state.”

PancakeSwap is years-deep into its deflationary arc. In December 2023, a governance vote approved lowering CAKE maximum supply from 750 million to 450 million tokens. The latest proposal is in the discussion phase on PancakeSwap’s governance forum. So far, the community response has been supportive of the latest proposal.

PancakeSwap’s 2025 performance was marked by expansion across ten blockchain networks, including new deployments on Solana and Monad. The platform launched PancakeSwap Infinity, a modular protocol upgrade featuring customizable liquidity pools, and introduced CAKE.PAD, an early token access platform that has hosted three oversubscribed sales, burning more than 157,000 CAKE collectively.

PancakeSwap processed $2.36 trillion in trading volume during 2025, a 619% increase from the previous year, and secured a 37.84% market share to become the largest decentralized exchange by trading volume. The platform attracted 35.37 million unique traders in 2025, representing 147% year-over-year growth.

The platform had $2.45 billion in total value locked as of the end of 2025. However, that has decreased to $2.38 billion as of the time of writing.

PancakeSwap has sustained its number one DEX ranking by trading volume since May 2025, consistently outpacing competitors throughout the second half of the year. Every quarter of 2025 set new all-time highs in trading volumes, with the fourth quarter reaching $856 billion.

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Source: https://www.cryptopolitan.com/pancakeswap-vote-to-reduce-max-supply/

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