Chainlink is playing an advanced role in Hong Kong’s push for cross-border payment functionality for its central bank digital currency (CBDC) experiments. Leaning on Chainlink’s infrastructure, participants in the pilot will attempt to move tokenized funds between Australia and Hong Kong. Chainlink Facilitates Cross-Border Digital Currency Exchange Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has been tapped
PancakeSwap, the largest decentralized exchange (DEX) on BNB Chain, has officially announced the implementation of CAKE Tokenomics 3.0. This marks a major shift toward a more sustainable and deflationary ecosystem.
According to the announcement, PancakeSwap will begin rolling out the new tokenomics model on April 23, 2025. The main goals are to curb CAKE inflation, optimize system efficiency, and deliver long-term value to the community. However, the CAKE 3.0 proposal has sparked considerable debate.
What Are the Key Changes in CAKE Tokenomics 3.0?
PancakeSwap has set three primary goals for Tokenomics 3.0: achieve an annual deflation rate of 4%, eliminate complex mechanisms such as veCAKE, and reduce CAKE emissions to improve sustainability.
Retirement of CAKE Staking, veCAKE, Gauges Voting, Revenue Sharing, and Farm Boosting: PancakeSwap will discontinue CAKE staking and the veCAKE mechanism, which required users to lock tokens in exchange for voting rights or benefits. All locked CAKE and veCAKE will be unlocked.
Burn Mechanism to Reduce Circulating Supply: PancakeSwap will burn tokens to reduce supply instead of sharing trading fees with users. The team expects to burn approximately 5.3 million CAKE annually, supporting the deflation target.
Phased Reduction in CAKE Emissions: Daily CAKE emissions will be reduced from 29,000 to 20,000, and later to 14,500 tokens.
Users will have six months from April 23, 2025, to withdraw their previously locked CAKE.
The Debate Around CAKE 3.0
Several developers and community members believe CAKE Tokenomics 3.0 will benefit the project in the long term.
“At its core, CAKE Tokenomics 3.0 defends true value and protects CAKE holders by strengthening long-term fundamentals—such as aggressively cutting emissions to accelerate deflation and sustainably grow value,” Chef Philip said.
However, not everyone agrees. Cakepie DAO—one of the largest veCAKE holders—voiced strong concerns on X. They criticized the decision to eliminate veCAKE, calling it non-transparent and potentially damaging to projects built around that model.
This reveals a divide in the community over how PancakeSwap is balancing deflation and stakeholder interests.
“Sunsetting veCAKE would be devastating for Cakepie and for every project built on long-term alignment with PancakeSwap. Our entire ecosystem is structured around veCAKE, with millions of CAKE locked for four years as a clear show of commitment. Removing veCAKE would erase that commitment overnight and undermine the trust and efforts of all builders who believed in PancakeSwap’s vision,” Cakepie stated.
In response, PancakeSwap proposed a $1.5 million compensation package in CAKE tokens. They offered this to CKP (Cakepie’s token) holders if Cakepie agreed to allow a 1:1 swap from mCAKE (Cakepie’s CAKE derivative) to CAKE.
However, Cakepie is currently voting on whether to accept the offer.
At the time of reporting, CAKE is trading around $1.97, up 17% since April 8, when PancakeSwap first proposed Tokenomics 3.0.
Additionally, data from DeFiLlama shows that PancakeSwap’s 24-hour trading volume has surpassed $1 billion, overtaking Uniswap.
Meanwhile, a report from BeInCrypto reveals that PancakeSwap controls over 90% of the DEX market share on BNB Chain. This highlights the strong relationship between BNB Chain and PancakeSwap.
Ethereum has seen some sideways movement this week, helping the altcoin break out of a nearly three-week-long downtrend. Despite facing bearish cues, including whale selling, Ethereum’s price has managed to hold steady.
This stability is raising expectations of an upcoming breakout, potentially setting the stage for a rise.
Ethereum Whales Move To Sell
Whale addresses are exhibiting bearish sentiment at the moment, as several large holders have started to liquidate their positions.
In the last 48 hours, addresses holding between 1 million and 10 million ETH sold over 1.06 million ETH worth approximately $2.57 billion.
Whale selling typically exerts downward pressure on the price, signaling potential bearishness. However, in this case, Ethereum’s price has continued to sustain itself, which indicates market resilience.
Looking at Ethereum’s macro momentum, the IOMAP (In/Out of the Money Around Price) chart reveals a significant demand zone for ETH. The zone holds 65.83 million ETH, valued at over $159 billion.
These holdings were bought between the $2,349 and $2,421 range, establishing a strong support area.
The large number of investors who purchased ETH in this price range are unlikely to sell at break-even or loss, making it difficult for the price to fall below this key support.
This demand zone acts as a solid cushion for Ethereum’s price, protecting it from any sharp declines. The support from these investors provides a foundation for Ethereum’s price to remain stable despite the recent selling pressure.
As a result, the price is less likely to drop sharply below the $2,344 mark, which would otherwise signify a more significant bearish trend.
Ethereum’s price is currently trading at $2,424, just under the critical resistance of $2,476.
While there has been no significant rise, the sideways movement has allowed ETH to break out of the three-week downtrend. This consolidation phase is setting the stage for potential upward momentum.
The factors discussed earlier indicate that Ethereum may continue to consolidate between $2,344 and $2,476 or potentially break through the resistance.
If Ethereum successfully flips $2,476 into support, a rise to $2,606 is likely. This would mark a significant breakout and could attract more buyers into the market.
On the other hand, if broader market conditions turn extremely bearish, similar to last week’s sentiment, Ethereum’s price could slip below $2,344 and fall to $2,205.
A drop below this support would invalidate the current bullish thesis, potentially signaling a further decline.
