PancakeSwap Plans to Cut CAKE Token Max Supply to 400M

Key Highlights

PancakeSwap plans to reduce CAKE’s maximum supply from 450M to 400M, leaving 50M tokens for future growth.
Circulating supply is about 350M, and the platform achieved an 8.19% token burn in 2025 through fees, lotteries, and farming.
Community feedback is positive, and the final decision will be made via an on-chain vote targeting 4% annual deflation.

Decentralized exchange PancakeSwap has proposed reducing the maximum supply of its CAKE tokens from 450 million to 400 million. According to an announcement on X, the move is intended to keep CAKE tokens rare and support a deflation system while still leaving some tokens for future needs.

Right now, about 350 million CAKE tokens are in circulation. This means that after the change, only 50 million tokens will be left for the platform’s growth and projects.

🥞 Discussion of Proposal to Reduce CAKE Max Supply
Following the rollout of CAKE Tokenomics 3.0, CAKE’s token supply has achieved a net burn of ~8.19% in 2025
Given this momentum, the Kitchen is proposing to:
🔹 Reduce CAKE’s max supply from 450M to 400M CAKE
🤝Your feedback… pic.twitter.com/IqfJXSSodP
— PancakeSwap (@PancakeSwap) January 13, 2026

In a blog post, ChefMaroon, the business development lead, said that “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.” So far, the community has responded positively, with users praising the plan and showing support in the forum.

How PancakeSwap reduced CAKE supply

PancakeSwap started strengthening its deflation system in April 2025 with Tokenomics 3.0. Back then, the daily token emission was cut from 0,000 to 22,500 tokens, and the veCAKE staking system model was removed.

These changes helped lower the circulating supply from 380 million to 335 million tokens. The platform also increased token burns from trading fees, lottery revenue, and initial farm offerings, keeping the deflation trend active. For example, around 715,000 CAKE were burned in a single week.

The platform has also collected about 3.5 million CAKE in its Ecosystem Growth Fund to support development before considering any additional emissions. PancakeSwap said it is unlikely the protocol will return to an inflationary state, showing its commitment to a controlled supply. The new proposal is now open for an on-chain vote, targeting a 4% annual deflation rate to keep the token’s economy healthy.

PancakeSwap’s recent growth and long-term plans

PancakeSwap recorded a sharp surge in activity last year in 2025. The platform handled $2.36 trillion in trading volume, a 619% increase from the previous year, and had 35.37 million unique traders. Its total value was $2.45 billion by the end of 2025, but has slightly dropped to $2.38 billion now.

The platform has expanded to ten blockchains and recently launched PancakeSwap Infinity with flexible liquidity pools. It also launched CAKE.PAD, a token access platform that burned over 157,000 CAKE.

The proposal is part of the exchange’s long history of managing CAKE tokens. In 2023, the maximum supply was lowered from 750 million to 450 million through a community vote. In short, this reduction has helped protect the value of the token over time. It also keeps PancakeSwap’s economy steady and predictable, so users know what to expect.