Proposal to Reduce CAKE Token Max Supply

In April 2025, we passed the CAKE Tokenomics Proposal 3.0, which retired the veCAKE model and reduced CAKE emissions from ~40,000 to ~22,250 per day.

Because of this change, we attained a net burn of ~8.19% of CAKE’s token supply in 2025, reducing it from 380M at the start of the year to ~350M now, maintaining CAKE’s deflationary streak since Sep 2023, with no signs of stopping soon.

Given this, the Kitchen would like to propose reducing CAKE’s max supply from 450M to 400M CAKE. We believe this is sufficient to sustain all future protocol growth.

While this still leaves ~50M CAKE between the current total supply (~350M) and the new max supply (400M), this is a buffer that we don’t foresee ourselves needing to use, though if extenuating circumstances require, we may still tap on.

That said, we have been steadily growing our Ecosystem Growth Fund, which currently has accumulated ~3.5M CAKE tokens. This can and will be used for the protocol’s growth needs before any additional emission is even considered. Hence, it is unlikely that the protocol will ever revert to an inflationary state.

Adjustment Details:

With the above in mind, we propose the following adjustments to the CAKE max supply:

• Current Max Supply: 450,000,000 CAKE
• Future Max Supply: 400,000,000 CAKE
• CAKE Max Supply Decrease: -50,000,000 CAKE
• Implementation steps: Decrease the max cap on token supply accordingly

Before you vote, please make sure you understand the impact of long and short term effects of CAKE emissions changes on our tokenomics.

• Read our 2025 Recap
• Read and digest the CAKE Tokenomics documentation
• Read this proposal in full
• Make up your mind, and cast your vote