PancakeSwap has proposed to cut CAKE supply by 50 million tokens, with market data showing an immediate rise in trading activity.
The PancakeSwap community has opened a discussion on a proposal to permanently reduce CAKE’s maximum supply by 50 million tokens. If approved, the hard cap would fall from 450 million CAKE to 400 million.
🥞 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
The proposal follows changes introduced in April 2025 under Tokenomics Proposal 3.0. That upgrade removed the veCAKE model and cut daily emissions from around 40,000 CAKE to about 22,500. Since then, the CAKE supply has remained net deflationary.
Deflation Already in Effect
PancakeSwap reports that CAKE supply declined by roughly 8.19% during 2025. Circulating supply fell from about 380 million at the start of the year to roughly 350 million today.
Under the new proposal, there will still be a gap of around 50 million CAKE between circulating supply and the proposed max cap. The team describes this as a buffer rather than a supply intended for release.
The protocol’s Ecosystem Growth Fund currently holds about 3.5 million CAKE. According to the proposal, this fund is expected to cover future growth needs before any increase in emissions is considered.
PancakeSwap has recently seen consistent growth in trading activity. According to data by DeFiLlama, the platform’s 30-day trading volume stands at $40.3 billion, securing second position among all spot DEX by total volume.
CAKE Price Reacts
CAKE reacted quickly to the proposal. The token’s 24-hour trading volume rose roughly 30% on Jan.13, according to data by CoinMarketCap. At the time of writing, CAKE is trading near $1.98, up around 2% in the past day.
According to analysts, the proposal could act as a major catalyst for a potential CAKE price rally. Notably, the token has been facing a downside since the October market crash after surging to $4.38. In the past month, CAKE has lost around 11% in price and $150 million in market cap.
On the daily chart, CAKE is trading near the middle Bollinger Band, which acts as an equilibrium. The bands are tightening, which suggests that traders could see price volatility in the near term.
CAKE price chart with Bollinger Band and MACD | Source: TradingView
Meanwhile, the RSI also sits near the neutral level. If the market sees catalysts in the coming days, CAKE could surge to resistance near $2.15 and $2.40.
However, if the altcoin fails to hold $1.90, a drop to $1.70 is also possible.
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