PancakeSwap, a leading decentralized exchange (DEX) on the Binance Smart Chain, has announced the approval of its CAKE Tokenomics v2.5 proposal by community vote. The proposal aims to address concerns over the sustainability of the current inflation rates for CAKE and outlines two voting options for the community.
The PancakeSwap community had raised concerns over the unsustainability of current CAKE inflation rates. In response, the proposal was revised to address their concerns, and community feedback was considered. The community agreed that reductions in CAKE inflation rates were necessary for the long-term health of PancakeSwap.
To address concerns raised by recent staking participants, the proposal offers two voting options to the community. The first option proposes a moderate amount of immediate reduction to lower overall inflation. The second option suggests a staged reduction of future CAKE Syrup Pool emissions with clear forward guidance to present and future stakers on emissions and staking APR. The proposal also ensures that the Syrup Pool APR remains attractive relative to other DEXs at the end of the reduction period.
The two voting 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.
The team will announce product benefits and implementation to CAKE stakers based on product timelines. They plan to implement revenue sharing and increase CAKE weightage for longer-term stakers by the end of June.