CAKE has been catching some fresh attention in the crypto space. Over the past day, CAKE price jumped by 8.3%, even though trading volume dipped about 6%. At publication, CAKE sits at $1.84. This price movement seems to be tied to some big changes happening around its tokenomics and governance.
On April 8, top analyst Marco Polo shared a key update on X (formerly Twitter): the 20 million CAKE tokens that many thought would be unlocked weren’t just held, they got re-locked for another four years. Not only that, but they added another 5 million tokens into the mix, bringing the total locked amount to 25 million. That move doubled the veCAKE supply to 50 million.
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Marco Polo also pointed out that this re-locking pulled 4.2 million CAKE out of circulation in a single day. That helped ease fears about a big sell-off and even gave the CAKE/BNB ratio a boost. But there’s another layer to it, those 25 million tokens are now split between eight wallets, each holding serious voting power. This raises some interesting questions about what decisions they’ll make when it comes to things like CAKE pool rewards.
🙌 A New Era for $CAKE Begins Today ☀️
— Marco Polo 🥞⛵️🏝️ (@marcopolo2027) April 8, 2025
The 20M $CAKE everyone feared would unlock… got relocked with 5M more — 25M locked for 4 years! 🙌🔒
Yesterday, the largest veCAKE position unlocked.
The entire community held its breath… would it be sold? withdrawn?
Instead, the tokens… pic.twitter.com/CQLIyK2s9Y
What you'll learn 👉
PancakeSwap Proposed Deflation and Tokenomics Changes
Multiple sources have reported a proposal to introduce 4% annual deflation for CAKE. Prominent analyst AMCrypto described the proposal as bullish, suggesting that if Bitcoin remains stable, CAKE price could rally to the $2.20–$2.30 range. The tweet noted that the deflation plan could lead to sustained upward momentum if market conditions align.
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Further supporting this outlook, crypto expert Satoshi Talks posted details from PancakeSwap’s Tokenomics 3.0 proposal. The proposal includes cutting emissions, simplifying token utility by removing veCAKE, staking, and gauge voting, and targeting deflation of around 4% annually. Since CAKE’s all-time high supply of 399 million in August 2023, more than 25 million tokens have already been burned.
#PancakeSwap has shared its $CAKE Tokenomics 3.0 proposal:
— Satoshi Talks (@Satoshi_Talks) April 8, 2025
– Target ~4% annual deflation
– Retire CAKE Staking, veCAKE, Gauges Voting, and Revenue Sharing to simplify ownership
– Cut CAKE emissions
Over 25M from the total supply has been burned since the ATH of 399M in Aug… pic.twitter.com/J2REczd45g
PancakeSwap Market Structure and Technical Outlook
CAKE price charts on the 8-hour timeframe show a symmetrical triangle formation, typically indicating a breakout phase. The price has been making higher lows and lower highs, consolidating within a narrowing range. A recent rally toward the upper trendline has shown strong momentum, although sellers remain active at the resistance level of $2.20–$2.30.
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Support is currently observed around the $1.70–$1.80 zone. If CAKE breaks above the triangle resistance with volume, price targets could extend to $2.70 or even $3.00. If Bitcoin weakens, however, CAKE price could face a pullback toward lower support levels, including $1.60.
CAKE Community Debate and Counterpoints
While the deflationary shift has received support, some concerns have been raised. Crypto researcher Juapia cautioned that 14 million CAKE previously excluded from supply (via Cakepie and Stake DAO) may return, offsetting recent burns. According to this view, the deflation narrative may not fully reflect actual circulating supply dynamics.
An argument for being against the proposal to end veCAKE:
— Juapia 🥞 (@juapia) April 9, 2025
There were 14 million $CAKE excluded from the supply forever(Cakepie and Stake Dao). these CAKE will return. This canceled out all the burning since sep 23.
The kitchen's proposal goes against what the kitchen says!
As governance shifts and new strategies unfold, the price of CAKE remains in a decisive phase. The coming weeks may define whether these structural changes translate into sustained price growth or renewed volatility.
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