6h ago
BURN A LOT BUT $CAKE IS STILL INFLATIONARY?
PancakeSwap is operating under the Net #CAKE Deflation mechanism, which means the total amount of CAKE minted is subtracted by the amount burned weekly/monthly, with a long-term goal of achieving a deflation rate of about 4% per year.
*In theory, the total supply of CAKE is gradually decreasing - clearly shown on the Dune Dashboard.
*However, the circulating supply continues to increase, especially strongly from the beginning of 2024 to now. The main reasons include:
- The mint per-block mechanism on the BNB Chain: when the block time is shortened (from ~1.5s to ~0.75s), the amount of CAKE issued in real-time increases if cakePerBlock has not been adjusted in time.
Unlocking veCAKE & staking pool: the amount of CAKE that was previously locked (lock/stake) is now returning to circulation.
- Farming programs, IFO, CAKE.PAD still require rewards in newly minted CAKE before being burned later.
=> In other words, CAKE has a decreasing total supply - but the circulating supply is still expanding, causing short-term inflationary pressure to persist even though the overall model is "deflationary."
=> If Pancake does not further reduce per-block emission or significantly increase real-time burns, this situation of "net deflation but circulating inflation" will continue.
8h ago
As of mid-October, projects have spent over $1.40 billion on buybacks in 2025, averaging ~ $145.9 million per month.
In particular, the second half of the year saw a significant acceleration: buyback spending from July onwards increased by ~ 85% month-over-month.
1- Among them, Hyperliquid absolutely dominates.
They have spent $644.64M to buy back $HYPE tokens - equivalent to 46% of the total buyback market in 2025, nearly equal to the next 9 major projects combined.
=> Approximately 21.36M #HYPE (~2.1% of total supply) has been bought back, averaging $65.5M/month, with an average price of $30.18/token.
2- LayerZero ranks second with a $150M buyback (~5% of $ZRO supply).
=> Average purchase price ~$3. However, LayerZero asserts that this is just a one-time event, not a recurring program => the potential to be surpassed by projects with "real revenue streams". The price of the ZRO token remains negative.
3- Pumpfun ranks third with $138.17M, averaging $40.47M/month, buying back ~3% of total supply at an average price of $0.0046 on $PUMP.
4- Raydium ($RAY) – the only project maintaining periodic buyback & burn since 2022, has spent $100.35M.
*I see buybacks for most projects as news primarily to retain holders; if revenue dries up, buybacks become "money-burning to maintain price" - no different from stock buybacks during the dot-com era. Conversely, for projects with real cash flow (like Hyperliquid), buybacks become a long-term value weapon.
- What are your thoughts?
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