PancakeSwap, the leading decentralized exchange (DEX) on BNB Chain, has introduced CAKE Tokenomics 3.0 to create a more sustainable and deflationary ecosystem. The updated model will be rolled out starting from April 23, 2025, with aims to reduce CAKE inflation, enhance system efficiency, and offer lasting value to users. Although the proposal has sparked discussions, PancakeSwap has outlined key changes, including a 4% annual deflation rate, discontinuation of complex mechanisms like veCAKE, and a reduction in CAKE emissions. The changes involve stopping CAKE staking, burning tokens to decrease the circulating supply, and gradually reducing daily CAKE emissions. Users will have a six-month window to withdraw previously locked CAKE. While some view CAKE Tokenomics 3.0 positively for its focus on long-term value, others, such as Cakepie DAO, are concerned, especially regarding the elimination of veCAKE. PancakeSwap has proposed a compensation plan to Cakepie to address this issue, awaiting Cakepie's decision. As of recent data, CAKE is trading at around $1.97, up by 17% since the introduction of Tokenomics 3.0. PancakeSwap's trading volume has exceeded $1 billion within 24 hours, surpassing Uniswap, demonstrating its dominance in the DEX market on BNB Chain.