PancakeSwap Records Another Month of CAKE Supply Reduction

PancakeSwap continued its long-running deflationary trend in December 2025, with CAKE supply shrinking for the 28th consecutive month. A total of 674,316 CAKE tokens were minted during the month, while 2,460,056 CAKE were burned, resulting in a net mint of negative 1,785,740 tokens.

More Than Half a Percent of Total Supply Burned

As of January 5, 2026, PancakeSwap reduced the CAKE total supply by 0.512% for December alone. This percentage was calculated by dividing the net mint of negative 1,785,740 CAKE by the total CAKE supply at the start of the period. Since September 2023, cumulative net supply reduction has reached 39,392,081 CAKE.

December 2025 CAKE Burn Overview

The December report highlights PancakeSwap’s ongoing efforts to manage CAKE supply through structured burns and its broader strategy of pursuing “ultrasound CAKE,” where token destruction consistently outpaces issuance.

Net Minting Confirms Deflationary Momentum

During December 2025, PancakeSwap recorded a negative net mint, meaning more CAKE was burned than created. This confirms the protocol’s continued success in maintaining a deflationary supply model despite ongoing emissions.

Sources of CAKE Minting in December

CAKE minting during the month came primarily from farming rewards, broader product usage across the platform, and initiatives supporting ecosystem growth. Mint calculations exclude CAKE emissions that directly contribute to burning and are based on raw CAKE-per-block emissions, adjusted for historical changes, to ensure accuracy.

Key Drivers Behind December’s CAKE Burns

Most CAKE burns in December were generated from swap activity and perpetual trading fees. Additional burns came from prediction markets and a range of platform features including the lottery, NFT marketplace, user profiles and factories, CAKE domains, and CAKE Pad.

Sustained Supply Reduction Strengthens Token Economics

With nearly two and a half million CAKE burned in December and issuance kept well below that level, PancakeSwap reinforced its long-term commitment to supply discipline. The continued reduction in circulating supply underscores the protocol’s focus on strengthening CAKE’s token economics through consistent, transparent burn mechanisms.