In our November 2023 report, we dive into the CAKE token supply management world on PancakeSwap. Learn how PancakeSwap reduces the CAKE total supply through strategic burns and pursuit ultrasound CAKE.

## **CAKE Total Supply Reduction:**
As of December 5th, 2023, PancakeSwap has successfully burned 0.089% of the CAKE total supply for November 2023. To calculate this percentage, we divided the total net mint of -351,962 CAKE by the initial total CAKE supply on October 30th, 2023. This marks the third consecutive month of CAKE total supply reduction, with a cumulative -712,667 CAKE net mint over September, October, and November 2023.

## **Achieving CAKE Total Supply Reduction through Net Minting:**
In November 2023, PancakeSwap achieved a net mint of -351,962 CAKE. This negative net mint indicates that more CAKE tokens were burned than minted during the month.

## **November Mint Breakdown**
- Farms: 661,328 CAKE
- CAKE Syrup Pool: 302,349 CAKE
- Other Product Usage: 119,980 CAKE
- Total November Mint:  1,083,657 CAKE

Please note that we have excluded CAKE mints that directly contribute to burning, calculating the mint based on raw CAKE/block emission (including emission changes over the months) for a precise monthly mint estimate.

## **November Burn Categories**
- Swaps and Perpetual Trading Fees: 1,070,411 CAKE
- Prediction: 201,170 CAKE
- Pancake Protectors: 33,179 CAKE
- Lottery, NFT Market, Profile & Factory: 130,859 CAKE
- Total November Burn: 1,435,619 CAKE

Note: We pro-rate weekly CAKE burns over two months to ensure accuracy. For example, burns occurring at the end of October and stretching into November receive a proportionate allocation between the two months.

## **Proof of Burn for November:**
- November 7: **[Link](https://bscscan.com/tx/0xc68207b9bf6ef58cb4d73e5b95bb4c0468b9897f4721cf5637f6c98bbff97f96)**
- November 13: **[Link](https://bscscan.com/tx/0xfcb72ad067760377ffe03f06f2a718a4350892ab942bfa663b96f9c807bae105)**
- November 20: **[Link](https://bscscan.com/tx/0x641429254be9f521e7a69ffed8da932aa07705013f5a7f95908835436719ea58)**
- November 27: **[Link](https://bscscan.com/tx/0x5d8d4a1eb566cdf3147c99c7fba0210d974d4b9580005837a574b11ef5f7f489)**
- December 4: **[Link](https://bscscan.com/tx/0xc5460ffb7c5797367bf5cb40b203497c0bc205e19f7202bdf561db9a12eaea50)**

In our November 2023 report, we dive into the CAKE token supply management world on PancakeSwap. 

November 2023: PancakeSwap's CAKE Burn

### **PancakeSwap April Data**

- Total Value Locked (TVL): $1.82B
- Total Volume: $30.92B
- Average Daily Volume: $1.03B
- Unique Traders: 2.40M
- Unique Onsite Users: 2M

### 

### **CAKE Token**

- Total Burned: 37.8 M CAKE ($72.5M)
- Monthly Net Mint: -2,288,550 CAKE
- % of Total Supply Burned: -0.611%
- Number of Holders: 1,832,941 (MoM +0.19%)

_As our emissions and burn data are calculated and grouped by weeks, not months, the statistics above may not one-to-one reflect our “monthly burn”, and only serves as a guideline. For more information on our burns, please refer to our weekly burn post on our social channels._

### **Served In April**

#### **CAKE Burn Report – April 2025 & New Burn Dashboard**

In April, PancakeSwap continued to deliver on its commitment to Ultrasound CAKE, achieving a net reduction in CAKE supply for the 20th consecutive month. This brings the total net burn to an impressive -16,923,316 CAKE since we began this journey.

To make it easier for everyone to follow our deflationary progress, we launched the CAKE Burn Dashboard — a new home for real-time data on:

- CAKE burned
- CAKE emissions
- Deflation metrics
- And more

Stay informed, track our progress, and watch the burn in action at [**https://pancakeswap.finance/burn-dashboard**](https://pancakeswap.finance/burn-dashboard)

#### **PancakeSwap Infinity is now live:**

April marked the official launch of PancakeSwap Infinity, our most advanced and modular version to date. Designed with flexibility at its core, Infinity introduces a customizable architecture through hooks, enabling developers to build tailored trading experiences and integrate new functionalities directly into liquidity pools. Alongside significant gas efficiency improvements and better routing logic, Infinity lays the groundwork for PancakeSwap to evolve beyond a traditional DEX, becoming a full-featured DeFi infrastructure layer.

Deployed on BNB Chain, Infinity opens the door to a new era of on-chain composability. Whether you're a trader, builder, or liquidity provider, Infinity brings powerful tools to make DeFi smarter and more adaptable than ever.

Explore Infinity pools at [**https://pancakeswap.finance/pools**](https://pancakeswap.finance/pools) , read our deep-dive [**blog posts**](https://blog.pancakeswap.finance/), or **[rewatch the AMA with Chef Kids](https://youtube.com/live/lMS2mVMVAAQ?feature=share)** to learn more about what makes Infinity a game changer.

#### **Governance & Tokenomics: A New Era Begins – Proposal 3.0 Approved**

In April, the CAKE [**Tokenomics Proposal 3.0**](https://pancakeswap.finance/voting/proposal/0x79ef496c9737e48d9677a6e291ff2a549dee6729c9996398e453af8ecbf0ceb3) was officially passed with a 98.89% of votes in favor. This marks a historic moment for PancakeSwap — a fundamental shift in how CAKE emissions, governance, and utility are structured.

Key changes:

- veCAKE and staking mechanisms retired — All veCAKE was unlocked without penalties.
- Revenue sharing retired — Fees from 0.01% and 0.05% v3 pools are now fully directed to burns.
- Emissions reduced from ~40,000 to ~22,250 CAKE/day, supporting a ~4% annual deflation goal.
- Direct emissions management will be allocated based on real-time market data and LP efficiency.
- Simplified CAKE utility — Users can now participate in IFOs, TGEs, and governance without locking tokens.

This new model addresses past inefficiencies, eliminates unnecessary complexity, and puts the protocol on track for a more sustainable and flexible future.

We want to sincerely thank our community for your overwhelming support, thoughtful feedback, and commitment to the future of PancakeSwap. This proposal is the result of months of collaboration — and we’re just getting started.

#### **Product Update: Auto Slippage is Live!**

Trading on PancakeSwap just got smoother. In April, we introduced [Auto Slippage](https://docs.pancakeswap.finance/trading-tools/pancakeswap-auto-slippage) — a new feature designed to reduce failed transactions and simplify the user experience.

Instead of setting your slippage tolerance manually, Auto Slippage dynamically adjusts it based on current network and market conditions. This helps:

- Avoid failed trades due to low slippage during volatility or low liquidity.
- Prevent users from setting slippage too high and getting less value than expected.
- Save time and gas fees by reducing trial-and-error.

Auto Slippage automatically selects a value between 0.5% and 5.0%, depending on the gas cost vs. token output value

This enhancement is part of our commitment to making DeFi easier and more efficient for everyone.

#### **Token Generation Events – New High!**

April set a new record for PancakeSwap, with seven Token Generation Events (TGEs) in a single month — the highest ever. All events were co-hosted with Binance Wallet, featuring new and promising DeFi projects.

Want to join the next one? Stay tuned!

Thanks for reading! Don’t forget to follow us on [Twitter](https://x.com/PancakeSwap) , join us on [Telegram](https://t.me/PancakeSwap) and [Discord](https://discord.com/invite/pancakeswap)

*The Chefs* 🥞

PancakeSwap April Recap

Our April 2025 report explores the world of CAKE token supply management on PancakeSwap. Learn how PancakeSwap reduces the total supply of CAKE through strategic burns and the pursuit of ultrasound CAKE.

#### **CAKE Total Supply Reduction:**

As of  May 5, 2024, PancakeSwap has successfully burned -0.611% of the CAKE total supply for April 2025. To calculate this percentage, we divided the total net mint of -2,288,550 CAKE by the initial total CAKE supply on  March 31, 2025. This marks the 20th consecutive months of CAKE total supply reduction, with a cumulative -16,923,316 CAKE net mint over September, October, November, December 2023, January, February, March, April, May, June, July, August, September, October, November, December 2024, January, February, March, April 2025.

#### **Achieving CAKE Total Supply Reduction through Net Minting:**

In April 2025, PancakeSwap achieved a net mint of -2,288,550 CAKE. This negative net mint indicates that more CAKE tokens were burned than minted during the month.

#### **March Mint Breakdown**

- Farms: 822,634
- CAKE Syrup Pool: 25,487
- Other Product Usage: 119,956
- Ecosystem Growth: 135,483
- Total April Mint: 1,103,560

_Please note that we have excluded CAKE mints that directly contribute to burning, calculating the mint based on raw CAKE/block emission (including emission changes over the months) for a precise monthly mint estimate._

#### **March Burn Categories**

- Swaps and Perpetual Trading Fees: 3,041,244
- Prediction: 236,305
- Lottery, NFT Market, Profile & Factory, CAKE Domain: 114,560
- Total March Burn: 3,392,110

_Note: To ensure accuracy, we pro-rate weekly CAKE burns over two months. For example, burns occurring at the end of February and stretching into April receive a proportionate allocation between the two months._



Our April 2025 report explores the world of CAKE token supply management on PancakeSwap.

April 2025: PancakeSwap's CAKE Burn

### The Journey So Far:

- **April 8, 2025**: Shared a discussion proposal to gather community feedback.
- **April 15, 2025**: Official proposal published for voting.
- **April 18, 2025**: Proposal passed.
- **April 23, 2025**: Official implementation of CAKE Tokenomics 3.0 begins.

### Timeline and Phases of Implementation

### 1. Retirement of veCAKE & Gauges Voting

- Starting **April 23, 2025, at 00:00 AM UTC**, veCAKE and Gauges Voting will officially be retired.
- The final voting period will end at **00:00 AM UTC, April 23, 2025 (Epoch 37)**. After this, voting will no longer be available from **Epoch 38** onward.
- **Epoch 38 (April 25–May 6, 2025)** will apply the results and emissions based on Epoch 37’s voting outcomes.
- Gauges Voting rewards (including veCAKE Pool APR and Bribe APR) will continue to accrue until **00:00 AM UTC, May 7, 2025**, when Epoch 38 ends. After that, no new rewards will be generated.

### 2. Unlocking CAKE Staking

- Starting **April 23, 2025, at 08:00 AM UTC**, all CAKE and veCAKE staking will be unlocked. Users who have directly staked CAKE through the PancakeSwap interface will be able to redeem their veCAKE for CAKE on a 1:1 basis. (***Note**: veCAKE is calculated based on the staking duration, so users will be able to redeem the underlying amount of CAKE.)*
- If you wish to continue earning rewards (veCAKE Pool APR, Bribe APR, Revenue Sharing APR) from the **final Epoch 38**, **do not withdraw your CAKE before 00:00 AM UTC, May 7, 2025**.
- **Redemption Period:** Users who have directly staked CAKE through the PancakeSwap interface have **6 months** to redeem their staked CAKE and veCAKE, with the deadline being  **08:00 AM UTC, October 23, 2025.**
- For veCAKE linked to **veCAKE managers (e.g., Aster, StakeDAO, CakePie),** PancakeSwap will whitelist the delegator addresses for locker protocols that enable 1:1 redemptions. These protocols will launch a redemption page on their interfaces, allowing users who have staked with them to redeem their xCAKE for CAKE on a **1:1 basis. Please refer to Vecake Manager’s announcement for detailed time** .

### 3. Farm Boosting Discontinued

- Farm yield boosting will be gradually retired from position managers, syrup pools, and farming activities starting **April 24, 2025 and ending May 7, 2025**. Rewards from yield boosting will continue to accrue only until this date.

### 4. Revenue Sharing Discontinued

- The **5% revenue share** from trading fees in v3 pools (0.01% and 0.05%) will be discontinued. Funds that were previously allocated to revenue sharing will now be redirected to the **CAKE burn mechanism**, increasing the burn rate for these pools from **10% to 15%**.
- Revenue Sharing rewards will continue to accrue until **00:00 AM UTC, May 7, 2025**.
- To continue earning Revenue Sharing rewards from the final **Epoch 38**, **do not withdraw your CAKE before 00:00 AM UTC, May 7, 2025**.

### 5. CAKE Emission Reduction (Phases 1 & 2)

- **Phase 1 (Starting April 25, 2025):** Daily emissions will decrease from approximately 29,000 CAKE to 20,000 CAKE. The Ecosystem Growth Fund allocation will be cut by 50% (from ~6,500 CAKE per day to ~3,250 CAKE per day) and redirected to the burn mechanism.
- **Phase 2 (within 4 weeks of Phase 1):** Daily emissions will further reduce to 14,500 CAKE, resulting in the permanent burn of 5.3 million CAKE per year, effectively removing this CAKE from circulation.

### 6. CAKE Pool Delegation and Dune Burn Dashboard Update

When we launched the veCAKE system, many users still had their CAKE tokens locked in the **CAKE Pool 0x45c54210128a065de780C4B0Df3d16664f7f859e**. To facilitate a seamless staking process, we introduced the delegation feature, allowing users to participate in the veCAKE system and its subDAO ecosystem by delegating their locked CAKE, without needing to move the tokens out of the CAKE Pool.

As of now, approximately **5.29 million CAKE** has been delegated from the CAKE Pool: **1.17 million to StakeDAO** and **4.12 million to CakePie**. The **5.29 million CAKE** delegated from the CAKE Pool is now **permanently** locked in the original CAKE pool (burned and irrecoverable by any party). However, it will need to be returned to those protocols for full redemption.

During the upcoming **Monday Burn** on **April 21st**, a portion of the burn (**5.29 million CAKE**) will be injected into these lockers. This adjustment will not affect CAKE’s total supply, and PancakeSwap will update the **Dune Burn dashboard** to reflect this change.

### In Summary, what Actions Do You Need to Take?

1\. **Claim Rewards**: To earn rewards from the final **Epoch 38** (April 25–May 7, 2025), make sure **not to withdraw your CAKE before 00:00 AM UTC, May 7, 2025**.

2\. **Redeem CAKE/veCAKE:** Users who have directly staked CAKE through the PancakeSwap interface have 6 months to redeem their staked CAKE and veCAKE, with the redemption **deadline set for October 23, 2025.**
    
For veCAKE linked to **veCAKE managers (e.g., Aster, StakeDAO, CakePie),** PancakeSwap will whitelist the delegator addresses for locker protocols that enable 1:1 redemptions. These protocols will launch a redemption page on their interfaces, allowing users who have staked with them to redeem their xCAKE for CAKE on a **1:1 basis. Please refer to Vecake Manager’s announcement for detailed time** .

Implementation of CAKE Tokenomics 3.0: What You Need to Know

### **PancakeSwap March Data**

- Total Value Locked (TVL): $1.78B
- Total Volume: $45.13B
- Average Daily Volume: $1.46B
- Unique Traders: 2.66M
- Unique Onsite Users: 2.35M


### **CAKE Token**

- Total Burned: 43.4 M CAKE 
- Monthly Net Mint: -2,714,238 CAKE
- % of Total Supply Burned: -0.72%
- Number of Holders: 1,829,486 (MoM +0.34%)

_As our emissions and burn data are calculated and grouped by weeks, not months, the statistics above may not one-to-one reflect our “monthly burn”, and only serves as a guideline. For more information on our burns, please refer to our weekly burn post on our social channels._

### Served In March

#### **Monthly Burn Report**

![burn.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/4606263aa8ae35bc2829c697df412177.jpg)

In March, PancakeSwap remained steadfast in its commitment to Ultrasound CAKE, successfully reducing the total supply of CAKE for the 19th consecutive month.
This milestone brings the cumulative net reduction to -14,634,766 CAKE since the start of our journey.

There was some helpful feedback and a few questions from the community earlier in the month regarding the reported numbers. To address this transparently, **[we hosted an AMA](https://www.youtube.com/watch?v=_wv8ZZj_Uw0&t=2s)** to walk through the details and share more context.

#### **Key CAKE Stats for March 2025:**

- 👨‍🌾Minted:  1,195,027
- 🔥Burned: 3,909,265
- 📉Net Mint: -2,714,238
-🔻% of total supply burned: -0.720%


This ongoing reduction reinforces PancakeSwap’s commitment to sustainable tokenomics, ensuring a strong and healthy ecosystem for CAKE. Stay tuned as we continue paving the way toward Ultrasound CAKE! 🥞

_Please note that we have excluded CAKE mints that directly contribute to burning, calculating the mint based on raw CAKE/block emission (including emission changes over the months) for a precise monthly mint estimate._

#### **Pancake Picks: Discover what’s trending**

In March, we launched **[Pancake Picks](https://docs.pancakeswap.finance/products/pancake-picks)**, a new spotlight section on our Liquidity Pools page highlighting the top 3 trending tokens on PancakeSwap.

Updated every weekday, this feature helps users stay on top of the most popular and active pools. Simple, eye-catching, and powerful.

#### **Trading Competitions: $125,000 Up for Grabs**

March was all about trading action on PancakeSwap! We kicked off two trading competitions in collaboration with **[EOS Network](https://blog.pancakeswap.finance/articles/pancake-swap-x-eos-network-trading-competition-75-000-in-rewards) (now Vaulta)** and **[MERL](https://blog.pancakeswap.finance/articles/pancake-swap-x-merl-trading-competition-50-000-in-rewards)** (Merlin Chain), offering a combined prize pool of $125,000.

#### **MEV Guard Now Supports More Wallets**

Our commitment to a safer trading experience continues. In March, **[PancakeSwap MEV Guard](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-mev-guard-on-bnb-chain-better-rates-and-safer-swaps-with-one-click)** expanded its support to include Binance Wallet, Trust Wallet, and Rabby Wallet on BNB Chain — joining MetaMask in the list of supported wallets.

This feature helps protect users from frontrunning and sandwich attacks, providing one-click MEV protection on web and mobile. Whether you're a DeFi native or just starting out, MEV Guard helps your swaps stay secure and smooth across a broader range of wallets.

#### **PancakeSwap supported four TGE events hosted by Binance Wallet.**

In March, PancakeSwap took part in four Token Generation Events (TGEs) for DeFi projects, all hosted by Binance Wallet.

Want to join the next one? Stay tuned!

#### **Meetups: Want more? Drop your city now! 🌍**

In March, our meetups across the **[Philippines](https://www.youtube.com/watch?v=8qPcYGsdcG8)** and Turkey attracted a combined total of over **120+ participants**. These events underscored the strong global engagement of the PancakeSwap community, as members from different regions came together to connect, learn, and celebrate the DeFi movement—all while sharing their passion for innovation.

Thanks for reading! Don’t forget to follow us on **[Twitter](https://x.com/PancakeSwap)** ,join us on **[Telegram](https://t.me/PancakeSwap)** and **[Discord](https://discord.com/invite/pancakeswap)**

*The Chefs* 🥞

PancakeSwap March Recap

GM PancakeSwap Community and CAKE Holders,

On April 8th, 2025, we published a [**discussion proposal for CAKE 3.0 Tokenomics**](https://forum.pancakeswap.finance/t/cake-tokenomics-proposal-3-0-true-ownership-simplified-governance-and-sustainable-growth/1237) inviting our community to share their feedback about the proposal. We value your input and are committed to keeping an open, transparent dialogue with our community. Let's dive into some of the most common questions raised, along with the responses from the Chefs.

**1\. Is the deflation capped at 4% per year under this proposal?**

No, the 4% is a target based on data from the past two years. Burns are tied to a percentage of volumes, as outlined in the tokenomics graphic. If PancakeSwap performs well and volumes are high, more CAKE will be burned. While it’s true that the CAKE burn is influenced by CAKE’s price, an increase in price also means liquidity providers earn more from rewards. Emissions can then be adjusted to more sustainable levels, with any excess burned to balance this dynamic.

**2\. If mCAKE and sdCAKE become depegged, will they still be redeemable 1:1? If the proposal passes, can you clarify the redemption process?**

Yes, delegator addresses will be whitelisted from PancakeSwap, and participants in veCAKE Managers (such as Magpie, StakeDAO, and Aster) will have the ability to process redemptions from their respective platforms. The redemption ratio will remain 1:1 based on the smart contract, with all veCAKE Manager creations on PancakeSwap. 

**3\. Why not make mCAKE, sdCAKE, and other wrapped Cake assets redeemable directly for CAKE by blacklisting the original veCAKE protocol addresses?**

When users lock their CAKE via a veCAKE Manager, only the delegator can unlock and withdraw the CAKE and redistribute it back to the users. We cannot act on behalf of the delegators at the contract level, just as we cannot unlock CAKE for any other users. Therefore, users can only redeem their CAKE directly from the veCAKE Manager.

**4\. What incentives will exist for holding CAKE without revenue sharing, CAKE emission, or a gauge mechanism in place?**

CAKE’s value will be driven by real utility and scarcity. As part of this proposal, the 5% of LP fees previously allocated to revenue sharing from the v3 0.01% and 0.05% fee tiers will now be redirected to the buy-and-burn mechanism, increasing the burn rate for these pools from 10% to 15%. Since these pools represent a significant portion of PancakeSwap’s overall trading volume, this change is expected to accelerate CAKE deflation. It aligns with our long-term vision of simplifying the model while enhancing burn efficiency. 

PancakeSwap already allocates a majority of its protocol fees to buy-and-burn, and CAKE will continue to have utility through governance, TGEs and IFOs as outlined in the proposal. 

Most importantly, there will be a clear and direct link between the protocol’s revenue and the CAKE holders’ benefit from the burn mechanism. This proposal seeks to maintain a strong deflationary trend by carefully balancing emissions (spending) with revenue (fees allocated to the burn).

**5\. We’ve heard some of the community would like to continue veCAKE with higher efficiency for emissions. Will this work in practice?**

The proposed recommendations include: placing emissions caps on low-revenue generating pairs, linking fee generation to the emissions a pool receives, and raising the cost of bribes to create competition with pools that generate higher organic fees. While these are reasonable short-term solutions, they don’t address the core issue—they merely delay the problem.

Based on the data, pools that currently receive bribes would need to reduce emissions by at least 80%. These pools generate relatively low volumes and are essentially subsidized by more profitable pools. By reducing emissions and reallocating most of these emissions to the more profitable pools, the revenue flowing to CAKE lockers will decrease substantially. This will make bribes less attractive and leave users with no option but to accept lower returns on their locked CAKE.

This proposal seeks to provide users with the option to redeem their CAKE, rather than face a significant reduction in voting APR over multiple epochs or be penalized for redeeming early.

**6\. Given that half of the user base faces many geo-restrictions from participating in the TGE, how can PancakeSwap claim to be truly decentralized when such a significant portion of the user base cannot engage in key activities?**

The TGE is a partnership between PancakeSwap and Binance Wallet, and as such, PancakeSwap must adhere to Binance Wallet’s compliance requirements. However, PancakeSwap IFOs are open to PancakeSwap users, and the new simplified model will increase accessibility for CAKE holders. This will make the IFO process more attractive to projects, allowing them to reach a broader user base.

**7\. How will emissions previously governed by the veCAKE system be managed in the new proposal? What will guide the decisions for reallocating rewards from existing pairs to new ones? What metrics will be used to evaluate these changes, and what’s the expected timeline for reallocating rewards? How will these changes be communicated to the community?**

As we’ve used for the past 20 months, the guiding metric for allocating emissions is "Revenue per CAKE Spent." This ensures that for every emission, the protocol benefits by burning an equal or greater amount of CAKE. While most emissions will continue to maintain core pairs that support CAKE deflation (e.g., BNB-USDT), a portion will be allocated to expanding PancakeSwap's market share on new chains. In initial deployments (e.g., Base), more profitable chains like BNB Chain will subsidize the CAKE spend. Over time, we will optimize emissions based on volumes, making new chains profitable for PancakeSwap. A real-time burn and emissions dashboard will be launched for the community to track emissions allocations. As always, on-chain data will be available for anyone to view the CAKE allocated across different farms.

**8\. How will decentralization work in PancakeSwap with the proposed changes to staking and veCAKE? Will the lack of staking lead to manipulation by whales in governance proposals?**

If the proposed changes are implemented, voting will shift to a direct model, where voting power is determined by the amount of CAKE held by each wallet address. When a proposal is made, a snapshot of CAKE holdings will be taken, and this snapshot will directly correlate with the voting power each user holds, ensuring that voting reflects the amount of CAKE in each wallet. This approach keeps CAKE liquid during the proposal process while still linking voting power to individual holdings. Many other protocols have successfully operated governance without requiring staking, and the possibility of incorporating delegation features will be explored in the near future.

**9\. Will the veCAKE model remain active until the end of this voting cycle? If so, how will the disproportionate voting power of those who locked a large amount of CAKE recently affect the fairness of decision-making?**

Yes, the veCAKE model will remain active until this proposal is either approved or rejected. If the proposal passes, there will be a final epoch where votes and bribes will continue to be recognized. After this final epoch, emissions reductions will begin, and emissions will be gradually redirected to the pools that generate the highest revenue and burn rates, while still maintaining attractive returns for liquidity providers. Throughout the decision-making process, veCAKE holders can continue to vote for specific gauges on the gauge voting page until the voting period for the proposal is completed.

On April 8th, 2025, we published a discussion proposal for CAKE 3.0 Tokenomics

Forum Feedback: CAKE Tokenomics 3.0 Discussion Proposal 

PancakeSwap’s CAKE burn system is designed to help manage the total supply of CAKE by periodically burning (removing) a portion of the minted tokens. The goal is to burn more CAKE than minted, decreasing the token supply. This deflationary approach helps maintain a balanced supply, supporting the token’s long-term health and growth.

We understand that some users have questions about the recent changes to the burn format and how CAKE is managed. Let’s dive into these questions and give you a clearer picture of the key points so you can better understand how the CAKE burn system works and our updates.

## 1. How Does the New Burn Format (Introduced on March 24th, 2025) Work?

We switched to a **[simpler format](https://x.com/PancakeSwap/status/1904196792864125387)** to make it easier to understand the impact of burns on CAKE’s deflationary status. Previously, we reported large amounts of CAKE being burned each week (often over 9M CAKE), but this number only showed the total CAKE burned without factoring in the CAKE that was minted in the same week. As a result, it didn’t fully capture how much CAKE was actually being removed from circulation.

Now, we focus on Net Deflation as the key metric for CAKE’s tokenomics. This method provides a more accurate picture of how much CAKE is actually being reduced from the supply.

**Here’s how we calculate it:**

**Net CAKE Deflation =**
    CAKE Minted (Emitted) to products (like V2 pools, V3 pools, and Lottery)
    **Minus**
    CAKE Burned from products (like V2 pools, V3 pools, Lottery, Prediction, IFOs, and Perpetuals)
    
For example, our recent **[burn update](https://x.com/PancakeSwap/status/1904196792864125387)** reported a net deflation of -339k CAKE, effectively reducing CAKE’s current total supply by 339k, or -0.12%.

**Note:**

- The Ecosystem Growth Fund is excluded from this calculation until its tokens enter the market. Further details on this can be found in point (3) below.
- Products that generate fees and are processed monthly rather than weekly (e.g., Base pools, Ethereum pools, and IFO-related burns) will cause a sharp increase near the beginning or end of a month as these burns are accounted for

## 2. Burn Numbers from Week to Week

It’s not uncommon to see some variations between the burn numbers we reported and what is shown on platforms like **[Dune](https://dune.com/pancakeswap/PancakeSwap-CAKE-Tokenomics)**. This can happen because the amount of CAKE minted each week depends on when the trigger transactions are executed.

For example, CAKE burns take place regularly on Mondays, but since CAKE is minted at a rate of 40 CAKE per block, the amount of CAKE accumulated and sent for minting and burning can vary slightly depending on when the transaction is triggered.

If you look at the **[Dune Tokenomics chart](https://dune.com/pancakeswap/PancakeSwap-CAKE-Tokenomics),** you may notice an unusually large net_mint of -3.8M CAKE for the week of March 10th. While this figure is accurate on-chain, about 3M CAKE will be offset when the accumulated CAKE is minted to the **[Ecosystem Growth Fund](https://bscscan.com/address/0x91b3927f100Bb6c19E5434bFaBa07D60670b98D6)** during the next burn. As a result, the true net burn for the week of March 10th was around 800K CAKE.

To clarify, when the next burn occurs on Monday, March 31st, the total and circulating supply numbers on Dune will show an increase. However, this doesn’t represent an “additional mint.” **The only aspect the team can control is the burn — the minting process is governed by the blockchain and the timing of the transactions.**

![Screenshot 2025-03-26 at 18.34.52.png](https://sgp1.digitaloceanspaces.com/strapi.space/2a4608e4441cbef31b4109b7f2fdf026.png)

_[**PancakeSwap Tokenomics on Dune**](https://dune.com/pancakeswap/PancakeSwap-CAKE-Tokenomics)_

### 3. Ecosystem Growth Fund

The Ecosystem Growth Fund is not included in the net deflation calculation until its tokens are actually released into the market. This approach helps focus on the tokens that are actively being minted or burned in circulation, giving a clearer picture of CAKE’s real deflationary impact. Including tokens that haven’t entered the market yet could lead to confusion about how much CAKE is actually being reduced from supply.

Currently, the **[Ecosystem Growth Fund](https://bscscan.com/address/0x91b3927f100Bb6c19E5434bFaBa07D60670b98D6)** holds 830,625 CAKE, with a total of about 3.8M CAKE accumulated, 3M of which is stored in the MasterChef contract. The primary purpose of this fund is to support farm emissions, but most of this CAKE hasn’t been used yet. **Since 2024, less than 1% of the accumulated CAKE has been put to use, while 99% remains idle and hasn’t entered the market.** Including the full 3.8M CAKE in the calculation would overstate the amount of CAKE actually circulating.
![2.png](https://sgp1.digitaloceanspaces.com/strapi.space/5a54b44bd9c25228aaa4428fa653217c.png)

_**[Ecosystem Growth Fund Address](https://bscscan.com/address/0x91b3927f100Bb6c19E5434bFaBa07D60670b98D6)**_

**Example of Ecosystem Growth Fund Usage in the past year:**

- **Base Launch (Sep 2023)**: Redirected 0.015 CAKE per block from Ecosystem Growth to Base farms.
- **CB1 Airdrop**: Ongoing at $8,453 every two weeks. Transaction links: **[BSCScan](https://bscscan.com/tx/0x59e542febe942a979238b0de50f4d119fa93a856f4ee4d82fbfcc3359dd24933)**, **[Arbiscan](https://arbiscan.io/tx/0x0a91c6075a2cfd7cb5878272e07364bf518185d4c1372302d1b2bb8209c7e182)**, **[Basescan](https://basescan.org/tx/0x069c0fb5a6c098bd90f693b2ac040950024bcdcf3b0dcd81847be4039c7a9b26)**
- **Voting Proposal (Sep 2023)**: Redirect 0.4 CAKE per block from Ecosystem Growth to Burn, Burn the entire 3M that accumulated until this date. **[Proposal details](https://pancakeswap.finance/voting/proposal/0x45121903be7c520701d8d5536d2de29577367f2c84f39602026dc09ef1da8346)**
- **Locker Protocol Bribes**: 500 CAKE per day since April 23, 2024. **[Proposal link](https://pancakeswap.finance/voting/proposal/0x41feef37054b6c090a2629d6eb2ed39f426f169b725cb565903e6b3ba1771bcc)**
- **PancakeSwap Infinity**: Preparation for emissions (~1,200 CAKE per day).

As the fund’s CAKE may be used or burned in the future, excluding it from the current calculation reflects what is actively impacting the circulating supply. When these tokens actually enter the market, they will be considered in the supply, and their use will continue to align with the deflationary goal.

### **Future Improvements in Burn Reporting and Transparency**

To enhance transparency and provide users with a clearer view of the burn process, PancakeSwap will be taking the following steps:

- **Open-source Burn Dashboard**: We will be developing a dashboard where users can track all emissions and burns, along with their corresponding on-chain transaction hashes. This will allow users to verify the data easily and better understand the changes to CAKE's supply.
- **Simplified CAKE Tokenomics Documentation**: We will be revising the CAKE tokenomics documentation to provide clearer explanations and make it more user-friendly. The updated documentation will also include a list of all addresses involved in emitting or burning CAKE, offering users a transparent and accessible way to follow the process.

We hope this clarifies the CAKE burn system and answers your questions! As always, PancakeSwap is committed to improving transparency and making the process easier to understand. Stay tuned for more updates, and feel free to share any suggestions or concerns you may have.

The Chef’s

# **Appendix**

**A Step-by-Step Breakdown of How CAKE Minting and Burning Works**

To give you a clearer understanding of the entire process, here’s a simple breakdown of how CAKE is minted and burned:

**Minting**:

CAKE tokens are created through the **MasterChef contract**. Every block on the BNB Chain, **40 CAKE tokens** are minted. With **28,800 blocks per day**, CAKE is continuously minted throughout the day, but it doesn't happen all at once. Instead, the minted CAKE accumulates and is sent to the burn wallet when triggered.

**Burning**:

Every **Monday**, a portion of the minted CAKE is burned (permanently removed from circulation). Most of the tokens are burned directly, but a small portion is allocated toward rewards and ecosystem growth. The CAKE fees generated by PancakeSwap products (like farms, Lottery, etc.) are sent to a **[multisig wallet](https://bscscan.com/address/0xceba60280fb0ecd9a5a26a1552b90944770a4a0e)**, then transferred to a "burn address," which is permanently inaccessible, ensuring that the tokens are gone for good.

Here’s a snapshot of how this works:

**Example: Mint and Burn Transactions**

**[Mint Transaction](https://bscscan.com/tx/0xaadb2bd553d2d939b7a334ba8b61534a9f9b31ee9bf252310dbbfc0b56a92cd1) (March 21, 2025)**  - Automated via Chainlink Job to Fund MCV3:

![Screenshot 2025-03-26 at 18.43.13.png](https://sgp1.digitaloceanspaces.com/strapi.space/c78bbec7c2706076f2986478d765edf0.png)

- **Burn Address (4a0e)**: 838,904 CAKE (dev mint, all burned, not transferred anywhere else)
- **Main Staking Contract V2**: 8,379,697 CAKE (40 CAKE per block, majority burned)
- The gap between the mint (8,379,697 CAKE) and the transfer from the MasterChef v2 contract (7,751,273 CAKE) represents the remaining balance in the **[MasterChef v2 contract](https://bscscan.com/address/0xa5f8c5dbd5f286960b9d90548680ae5ebff07652)** (currently 533,278 CAKE), which is used for emissions (like Farms or Lottery rewards).

**[Burn Transaction](https://bscscan.com/tx/0xc676173e2a416fc9107c9b6e72127da215dbae1c9e25818e79e99decf56957d2) (March 24, 2025):**

![Screenshot 2025-03-26 at 18.43.18.png](https://sgp1.digitaloceanspaces.com/strapi.space/2011cc6dc027003dbf2f4c60ad5e3044.png)

- Most of the 40 CAKE minted per block (38.637 CAKE) is burned directly.
- 1.363 CAKE is allocated to V2 and V3 farm emissions, Lottery rewards, and the Ecosystem Growth Fund.
- Finally, all the accumulated burn fees are transferred from the burn multisig (4a0e) to the Burn Address, which is permanently inaccessible.

This process helps reduce the total supply of CAKE over time, supporting its deflationary mechanics.

Let’s dive into how the CAKE burn system works and our updates