The PancakeSwap team has announced a proposal to decrease the maximum supply of its native token, CAKE, from 450 million to 400 million tokens. This strategic move aligns with the ongoing efforts initiated in 2025, following the implementation of proposal 3.0, where the project shifted away from the veCAKE model and reduced daily emissions from 40,000 to 22,500 CAKE.
Currently, the circulating supply of CAKE stands at approximately 350 million tokens, reflecting a reduction of 30 million since early 2025. The proposed change is part of a broader strategy aimed at stabilizing the token”s value and controlling inflationary pressures within the ecosystem.
The PancakeSwap team indicated that while there remains a buffer of around 50 million CAKE tokens between the current circulating supply and the new maximum cap, they do not anticipate utilizing this reserve under normal circumstances. However, they have mentioned that extraordinary situations could prompt a reassessment of this reserve.
In conjunction with the proposed supply cap, PancakeSwap is also working on replenishing its Ecosystem Development Fund, which currently holds 3.5 million CAKE. The tokens in this fund will primarily support growth initiatives, although the likelihood of reverting to an inflationary model is said to be minimal.
It is worth noting that in 2025, access to PancakeSwap was banned in Turkey due to licensing issues, highlighting the regulatory challenges facing decentralized platforms. As the team navigates these complexities, the proposed supply cap could help enhance investor confidence and drive sustainable growth within the PancakeSwap ecosystem.
