PancakeSwap Implements CAKE Token Economics 3.0, VeCAKE and Gauges Retired – Coincu

PancakeSwap, a prominent decentralized exchange, has announced that the CAKE Token Economics 3.0 will commence on April 23, 2025, at 8:00 AM UTC, retiring veCAKE and Gauges Voting.

This change signifies a strategic move towards sustainable growth, impacting liquidity and governance mechanisms and affecting CAKE’s market interface.

Main Content

PancakeSwap has decided to retire the veCAKE and Gauges Voting mechanisms, which were key components in its governance. Starting April 23, 2025, at 8:00 AM (UTC), users who staked CAKE tokens through PancakeSwap’s interface will have until October 23, 2025, to redeem their staked assets. This will open up a 1:1 redemption opportunity to convert veCAKE to CAKE within the specified window.

The departure from veCAKE and Gauges Voting is expected to alter staking and liquidity distributions. The adjustment indicates PancakeSwap’s focus on a deflationary and sustainable tokenomics model. However, specific market reactions and liquidity shifts are anticipated. The transition will impact CAKE stakeholders, as stakeholders realign their strategies with the altered governance landscape.

Did you know? The move away from veCAKE aligns with trends seen in other DeFi protocols like Curve’s veCRV, historically leading to temporary market volatility.

According to CoinMarketCap, PancakeSwap’s CAKE token, currently priced at $2.03, features a market cap of $590.08 million with 290.14 million in circulation. The trading volume has surged by 32.66% reaching $69.85 million in the past 24 hours. Over recent periods, CAKE’s price has experienced fluctuations, showing a 2.32% increase over the last day but a decrease of 21.93% over 30 days.

Insights from the Coincu research team indicate potential financial adjustments and liquidity shifts as a result of PancakeSwap’s tokenomics overhaul. The decision marks a strategic shift with probable impacts on PancakeSwap’s growth trajectory, underscoring a commitment to sustainable governance changes.

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

Market Reactions and Expert Insights into PancakeSwap’s Move

Did you know? The move away from veCAKE aligns with trends seen in other DeFi protocols like Curve’s veCRV, historically leading to temporary market volatility.

According to CoinMarketCap, PancakeSwap’s CAKE token, currently priced at $2.03, features a market cap of $590.08 million with 290.14 million in circulation. The trading volume has surged by 32.66% reaching $69.85 million in the past 24 hours. Over recent periods, CAKE’s price has experienced fluctuations, showing a 2.32% increase over the last day but a decrease of 21.93% over 30 days.

Insights from the Coincu research team indicate potential financial adjustments and liquidity shifts as a result of PancakeSwap’s tokenomics overhaul. The decision marks a strategic shift with probable impacts on PancakeSwap’s growth trajectory, underscoring a commitment to sustainable governance changes.