Mark down cake @ PancakeSwap PancakeSwap is a multi chain DEX and AMM protocol, originally built on BNBchain and now extended to Ethereum、Solana、Arbitrum、zkSync、Linea、Aptos、Polygon zkEVM、opBNB Waiting for 9 chains, providing token exchange, liquidity mining, staking rewards, lottery, and startup platform services. Cake currently has a total volume of 351M and 337M in circulation, almost all of which are in circulation. The implementation of Token Economics 3.0 on April 23, 2025 is a major fundamental turning point. The goal of 3.0 is to achieve a positive cycle of "combustion>emissions" through transaction driven automatic combustion and community incentives. The following are the core mechanisms: 1. Transaction fee burning (core engine): This is equivalent to the TVL platform's "tax" directly destroying the supply. In the PancakeSwap V2/V3 pool, a fee of 0.25% is charged for each swap, of which 100% is used for burning CAKE. After introducing "centralized liquidity" in V3, cost allocation becomes more efficient - the burn rate of high volatility pools (such as meme coin pairs) increases by 20%. For example, in July, a single month trading volume of 772B contributed to burning~5 million CAKE. Mechanism details: The cost is extracted from the LP pool, converted to CAKE, and sent to the black hole. 2. IFO/CAKE.PAD combustion: Early IFO required users to lock CAKE to participate in the subscription of new project tokens, and the excess portion was automatically burned. After being renamed CAKE.PAD in October 2025, the threshold has been lowered (from 100 to 50), but the combustion rate has increased to 15%. Impact: In Q3 2025, CAKE.PAD events will burn over 3 million units, driving a single quarter deflation rate of 5%. 3. Lottery and Syrup Pools incentivize combustion: Lottery mechanism: Users need to pay CAKE when purchasing lottery tickets, and the 5% fee will be burned directly. By 2025, the lottery TVL will exceed 100M, contributing an average of 100000 burned tickets per month. Syrup Pools: A 0.1% "exit fee" is charged upon exit for treasury burning, further reducing circulation. 4. Governance and community driven combustion: The veCAKE (Voting Custody) model will retire in Tokenomics 3.0 in 2025 and be replaced with simplified governance: after the proposal is passed, the community can trigger a "batch burning" event (such as the burning of 2 million tokens on March 24th). This gives holders direct control over the pace of deflation. Historical event: When Tokenomics 3.0 was launched in April 2025, 10 million tokens were burned at once, marking a shift towards deflation after the peak supply. BNB operates through repurchase and burning, with an annual deflation rate of 2-3%. Cake perpetual trading profit of 20%+IFO handling fee of 100%+forecast/lottery rounds of 3%+V3 trading fee of 15%, with an annual deflation rate of 4%. Cake currently has a market value of 800 million and continues to burn deflation. Looking forward to the next bear market and seeing how much it will be.