DEX Opens Token Supply Reduction Proposal for Community Discussion, Price Surges 30%

Source: CryptoNewsNet Original Title: PancakeSwap Opens CAKE Supply Reduction Proposal for Discussion, Price Surges Original Link:

Overview

• The proposal aims to lower the hard cap from 450 million to 400 million tokens.
• Supply has stayed net deflationary since April 2025 after daily emissions were cut.
• Trading volume jumped about 30% on Jan.13, with the price near $1.98.

The community has opened a discussion on a proposal to permanently reduce the maximum supply by 50 million tokens. If approved, the hard cap would fall from 450 million to 400 million.

Discussion of Proposal to Reduce Max Supply

Following the rollout of Tokenomics 3.0, token supply has achieved a net burn of ~8.19% in 2025. Given this momentum, the proposal is to:

🔹 Reduce max supply from 450M to 400M tokens

Deflation Already in Effect

The platform reports that supply declined by roughly 8.19% during 2025. Circulating supply fell from about 380 million at the start of the year to roughly 350 million today.

Under the new proposal, there will still be a gap of around 50 million tokens between circulating supply and the proposed max cap. The team describes this as a buffer rather than a supply intended for release.

The protocol’s Ecosystem Growth Fund currently holds about 3.5 million tokens. According to the proposal, this fund is expected to cover future growth needs before any increase in emissions is considered.

The platform has recently seen consistent growth in trading activity. According to DeFiLlama data, the platform’s 30-day trading volume stands at $40.3 billion, securing second position among all spot DEX by total volume.

Price Reaction

The token reacted quickly to the proposal. The 24-hour trading volume rose roughly 30% on Jan.13. At the time of writing, the token is trading near $1.98, up around 2% in the past day.

According to analysts, the proposal could act as a major catalyst for a potential price rally. Notably, the token has been facing a downside since the October market crash after surging to $4.38. In the past month, it has lost around 11% in price and $150 million in market cap.

On the daily chart, the token is trading near the middle Bollinger Band, which acts as an equilibrium. The bands are tightening, which suggests that traders could see price volatility in the near term.

Price chart with Bollinger Band and MACD | Source: TradingView

Meanwhile, the RSI also sits near the neutral level. If the market sees catalysts in the coming days, the token could surge to resistance near $2.15 and $2.40.

However, if the altcoin fails to hold $1.90, a drop to $1.70 is also possible.