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CAKE supply cut proposal would reduce max supply to 400M, reinforcing PancakeSwap’s shift toward scarcity and long-term deflation.
Author: Kritika Gupta
14th January 2026: PancakeSwap has opened a community discussion to reduce CAKE’s maximum supply from 450 million to 400 million. The proposal introduces a permanent 11.1% reduction and builds directly on the success of Tokenomics 3.0. More importantly, the PancakeSwap CAKE max supply cut signals a long-term commitment to scarcity and predictable token economics. For holders, it strengthens CAKE’s positioning as a usage-driven, deflationary asset.
High Signal Summary For A Quick Glance
CoinRank
@CoinRank_io
PANCAKESWAP COMMUNITY PROPOSES REDUCING CAKE MAX SUPPLY TO 400 MILLION The proposal notes that since the approval of Tokenomics 3.0 in April 2025 and the removal of the veCAKE model, daily emissions have fallen from around 40,000 $CAKE to approximately 22,500, resulting in an https://t.co/z0DeovVKs2
02:00 PM·Jan 13, 2026
Coinspeaker
@coinspeaker
🔻 PancakeSwap floats a CAKE supply cap cut Community discussion is live to drop the hard cap by 50M: 450M → 400M $CAKE. CAKE has been net-deflationary since Tokenomics 3.0 (Apr 2025), and the headline already boosted trading activity. Full story ↡ https://t.co/7oPjfsfSeo
12:19 PM·Jan 13, 2026
BSCN
@BSCNews
🚨 CAKE TO GET RARER? @PancakeSwap’s proposal trims the max supply by 50M tokens. Tokenomics 3.0 already reduced emissions and retired veCAKE. The change aligns the hard cap with ongoing deflation trends. All the numbers and mechanics explained ⬇️ https://t.co/2q2QIjA68Q
09:58 AM·Jan 13, 2026
The proposal builds on CAKE Tokenomics 3.0, launched in April 2025. That upgrade removed the veCAKE locking model and sharply reduced daily emissions from roughly 40,000 CAKE to about 22,500.
As a result, token burns consistently exceeded new issuance. Across 2025, CAKE recorded an estimated 8.19% net burn, pushing circulating supply down from around 380 million to nearly 350 million. Since September 2023, CAKE has remained in sustained deflation.
Because of this momentum, the team now aims to formalize scarcity by lowering the maximum supply itself.
This is not PancakeSwap’s first major supply cut. In December 2023, the community approved a reduction from 750 million to 450 million CAKE, with nearly 98% support.
That decision marked the transition to the so-called Ultrasound CAKE era. It also shifted market perception, as CAKE moved from an inflationary rewards token to a capped asset.
At the time, CAKE’s price surged between 10% and 20% in the days following the announcement, alongside higher trading volume. That precedent shapes expectations for the current PancakeSwap CAKE max supply cut.
Key milestones related to this development
Token burns begin consistently outpacing new issuance, signaling a shift toward long-term scarcity.
The community votes (~98% support) to reduce CAKE’s maximum supply, launching the “Ultrasound CAKE” narrative and reinforcing a capped-asset perception.
CAKE rallies 10–20% in the days following the supply-cut announcement, with higher trading volume shaping expectations for future reductions.
PancakeSwap removes the veCAKE locking model and cuts daily emissions from ~40,000 CAKE to ~22,500, accelerating deflationary pressure.
Burns consistently exceed issuance, delivering an estimated 8.19% net burn and reducing circulating supply from ~380M to ~350M CAKE.
A further 11.1% permanent reduction is proposed to formalize scarcity and strengthen CAKE’s positioning as a usage-driven, deflationary asset.
Under the proposal, PancakeSwap would permanently reduce CAKE’s maximum supply from 450 million to 400 million tokens. This removes 50 million CAKE from any future issuance without affecting the current circulating supply.
Importantly, a 50 million token buffer remains below the new cap. The team describes this as a safety margin for unexpected ecosystem needs, although it appears unlikely to be used given strong burn dynamics and existing ecosystem reserves.
If approved, the change effectively removes future dilution risk tied to supply expansion.
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Since the January 13, 2026 announcement, community sentiment has been strongly supportive. Forum discussions describe the move as logical and overdue, with some users even calling for further emission reductions.
Meanwhile, market activity picked up quickly. Trading volume rose by roughly 30%, while CAKE held near the $1.98 to $2.00 range with modest gains of around 2%. Although early, the response mirrors the positive reaction seen after the 2023 cap reduction.
If approved, the 400 million cap would reinforce CAKE’s path toward sustained deflation. Current projections point to roughly 4% annual deflation and a potential 20% total supply reduction by 2030.
For holders, this improves supply predictability and reduces dilution risk. Over time, it also strengthens CAKE’s positioning as a yield-backed, usage-driven token rather than a pure incentive asset.
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