PancakeSwap’s Proposal For CAKE Tokenomics v2.5 Approved by Community Vote

PancakeSwap recently passed the Decision Proposal for CAKE Tokenomics v2.5 in a community vote. The proposal aims to transform CAKE, the native token of PancakeSwap, into a tokenomics model focusing on low staking inflation, the real yield from PancakeSwap’s protocol revenues, and product benefits favoring longer-term CAKE stakers.

Community feedback was considered, and the proposal was revised to address their concerns. The community agreed that the current inflation rates are unsustainable for CAKE over the long term, and reductions are necessary for the long-term health of PancakeSwap.

The main concerns raised were that recent staking participants are the most affected by reductions, even though they, too, recognize the benefits of reduced CAKE inflation. To address these concerns, the proposal offers two voting options to the community based on the principles of a moderate amount of immediate reduction to lower overall inflation, a staged reduction of future CAKE Syrup Pool emissions with clear forward guidance to present and future stakers on emissions and staking APR, and a Syrup Pool APR that is still attractive relative to other DEXs at the end of the reduction period.

The two options differ in the degree of the initial cut to Syrup Pool emissions and the duration of the managed reduction in Syrup Pool emissions. The technical implementation around revenue sharing and increased CAKE weightage towards longer-term CAKE stakers will take place at the end of June, given Q2 roadmap demands. Product benefits to CAKE stakers and implementation will be announced based on product timelines.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Source