Sweet Changes Ahead: PancakeSwap Launches CAKE 3.0 with Major Governance Overhaul

Decentralized exchange PancakeSwap has announced the rollout of its CAKE Tokenomics 3.0, set to go live on April 23, 2025, at 8:00 AM UTC. This update includes the retirement of the veCAKE model and Gauges Voting, signaling a major shift in the platform’s governance and liquidity framework.

Key Changes to Governance and Staking

As part of the transition, users who have staked CAKE via PancakeSwap’s interface will have until October 23, 2025, to redeem their tokens. During this redemption window, holders can convert veCAKE back to CAKE at a 1:1 ratio.

The move away from veCAKE and Gauges reflects PancakeSwap’s broader strategy to implement a more deflationary and sustainable token model. These changes are expected to affect staking behavior, liquidity distribution, and governance participation across the protocol.

Aligning with Broader DeFi Trends

The elimination of veCAKE mirrors similar governance shifts seen in other DeFi ecosystems, such as Curve’s veCRV. While such transitions often trigger short-term market volatility, they are generally aimed at long-term protocol health and scalability.

Market Impact and Token Performance

According to CoinMarketCap, the CAKE token is currently priced at $2.03, with a market capitalization of $590.08 million and a circulating supply of 290.14 million tokens. Trading volume has seen a notable 32.66% spike in the past 24 hours, reaching $69.85 million.

Despite a 2.32% price increase in the past day, CAKE has faced a 21.93% decline over the past month. Market analysts anticipate further price movements and liquidity rebalancing as investors adjust to PancakeSwap’s revamped tokenomics.

Strategic Direction and Long-Term Outlook

According to PancakeSwap’s official statement, this tokenomics overhaul is part of a broader effort to position the platform for sustainable, long-term growth. The updated economic model aims to reduce inflationary pressures while strengthening governance efficiency and protocol resilience.

“The new token economic model will drive PancakeSwap towards a sustainable, deflationary development path, focusing on long-term growth.” — PancakeSwap Official Announcement

As PancakeSwap enters this next phase, all eyes will be on how market participants and liquidity providers respond to the evolving DeFi landscape.