Summary: PancakeSwap, a leading decentralized exchange, announced on May 16, 2025, a major governance update with CAKE Tokenomics 3.0, setting 1 CAKE equal to 1 voting power to simplify participation, but the move has sparked debate over centralization risks in the DeFi space.
PancakeSwap’s latest update, CAKE Tokenomics 3.0, marks a significant shift for the decentralized exchange (DEX), aiming to make governance more accessible for its community.
Announced on May 16, 2025, via an official X post, the new system eliminates the veCAKE model—where voting power depended on locked tokens—and removes delegation requirements.
Now, 1 CAKE token equals 1 vote, with snapshots counting CAKE held at the time of a proposal, including staked tokens in pools like CAKE/BNB farms.
The change follows a contentious proposal introduced on April 8, 2025, which sought to cut CAKE emissions by 43% and redirect incentives to high-volume pools, according to a PancakeSwap forum post. The goal, as stated, is to prioritize “flexibility, sustainability, and long-term success” for CAKE holders and liquidity providers.
This aligns with the DEX’s recent Infinity launch on April 28, 2025, which introduced flexible pools and up to 99% gas savings, signaling a broader push toward user-friendly DeFi solutions.
However, the governance overhaul has not been without controversy. On April 9, 2025, Blockworks reported that eight connected addresses locked 25 million CAKE tokens—roughly half of the available supply—before the proposal, raising fears of a power grab.
Curve Finance founder Michael Egorov called it a “governance attack at its finest,” arguing that the removal of veCAKE wipes out existing holders’ rights and risks centralization. DeFi projects like Cakepie and StakeDAO also opposed the change, citing concerns over external influence being curtailed.
Supporters of the new model argue that veCAKE, introduced in 2022, failed to reduce CAKE sell pressure and added complexity. “The rebrand to Infinity reflects our vision for an open-ended future in DeFi,” said Chef Kids, head of PancakeSwap, in a statement following the Infinity launch.
The simplified voting system could boost participation, especially for smaller CAKE holders, but critics warn that large token accumulations, like the April lockup, could undermine the democratization effort.
As PancakeSwap moves forward, the DeFi community is watching closely. The update reflects a broader trend toward accessible governance in decentralized platforms, but it also highlights the challenge of balancing fairness and control. With user questions on X about voting logistics and transaction issues like $Jager’s pool, PancakeSwap’s next steps will be crucial in proving its commitment to a sustainable ecosystem.
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