PancakeSwap Launch Tokenomics 3.0 Upgrade Despite Drawn Criticism

PancakeSwap, a decentralized exchange (DEX) built on the BNB Chain, has begun implementing its long-awaited Tokenomics 3.0 upgrade for its native token, CAKE, despite some community members’ displeasure. Notably, the token has increased slightly in price by 4% in the last 24 hours.

Moreover, as confirmed by the PancakeSwap team, key changes are scheduled to go live on April 23, 2025. This overhaul will discontinue staking and governance functionalities via veCAKE.

Additionally, users have a six-month window to redeem their tokens at a 1:1 ratio after all locked CAKE and veCAKE positions unlock.

PancakeSwap Implements 3.0 Upgrade

Tokenomics 3.0 marks a significant shift for PancakeSwap, transitioning to a buy-and-burn revenue-sharing model while imposing a hard cap of 450 million CAKE tokens. Furthermore, the update eliminates emissions from yield farms.

These strategic adjustments curb token inflation, foster sustainable growth, and incentivize long-term user loyalty. The daily CAKE production will decrease from 29,000 to 20,000 to 14,500. This should burn about 5.3 million CAKE each year.

However, some people don’t like the plan to change how CAKE works in PancakeSwap. Cakepie DAO, which utilizes the veCAKE system and holds a significant amount of CAKE, expressed its displeasure with the proposal.

Instead of changing everything, Cakepie DAO suggested making minor changes to the current system. They want to reward pools that are performing well and penalize those that withdraw their staked coins early. PancakeSwap has offered up to $1.5 million in CAKE to Cakepie users if the Cakepie DAO agrees to exchange mCAKE at a 1:1 rate.

Even though some people disagree with the changes, CAKE’s price is improving. It’s now worth $2.01, a 0.7% increase from the previous day. The amount of CAKE traded daily has increased by 36% to $78.6 million.

Furthermore, PancakeSwap’s trading volume over the past 24 hours has also increased significantly, reaching $1.03 billion, compared to Uniswap’s $896 million, according to DefiLlama data. However, PancakeSwap’s weekly trading volume increased by 5%, while Uniswap’s decreased by 39%.

CAKE’s Technical Analysis

From a technical analysis perspective, CAKE rebounds from a multi-week low of $1.60. The price is approaching the Bollinger Band midline, and the relative strength index (RSI) has climbed to 53.95, exceeding the neutral threshold and indicating growing bullish momentum.

A confirmed breakout above $2.05 could propel the token toward the next key resistance level at $2.50, suggesting a positive outlook for the near term.

Nonetheless, the implementation of Tokenomics 3.0, therefore, presents a pivotal moment for PancakeSwap, striking a balance between innovation and addressing concerns within its community.

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