PancakeSwap’s “The Flip” vote passes: LPs get 88% of fees, and daily CAKE emissions ultimately cut by about 69%
📌 PancakeSwap governance page: Proposal ended on 10/24 at 08:07 UTC, with about 71% voting in favor (3.037 million vs. 1.245 million voting power, across 43 votes). dexwatch noted that opposition was briefly around 98% two days earlier, before large late votes reversed the result
📌 LP fee share for v3 and Infinity pools rises from about 2/3 to 88%, across 11 chains including BNB Chain, Ethereum, Base, and Solana; v2 remains unchanged. The remaining 12% goes to the treasury, with the non-stablecoin portion continuing to buy back CAKE
📌 Emissions will be reduced in two steps: 22,500 → 11,000 → 7,000 tokens per day (the remaining 7,000 tokens go to the Pantry ecosystem fund). Starting in November, one chain will switch over each week, with the first step taking about 3 months to complete. The second step will happen once total CAKE supply is down 20% from April 2025; the team expects this to take about 12 months
📌 Official figures: CAKE supply has fallen from 372.8 million to 329.9 million (-11.5%); CoinGecko shows CAKE at about $2.06 and BNB at about $737
【Commentary】
This is a trade-off that “shifts money from token holders to liquidity providers”: LPs get a much larger fee share, while the share of protocol fees available for buybacks drops from about 1/3 to 12%. But new supply is also cut sharply, meaning about 5.7 million fewer tokens will be minted each year. The net effect depends on whether the reduction in fee-funded buybacks or the reduction in emissions is greater. Just 43 votes were cast, and the outcome was reversed by large holders, which also shows that governance remains highly concentrated.
【Opportunities/Risks】
✅ After the first chains switch over in November, watch whether TVL and trading depth in pools on chains like BNB Chain improve
✅ Track weekly CAKE burn data to see whether deflation is on pace to meet the 20% target
⚠️ Lower protocol fee revenue could slow buybacks; transparency around how the Pantry uses its 7,000 tokens per day is key
⚠️ Short-term profit-taking is common after “good news is priced in”; keep an eye on the broader market’s response to Wednesday’s FOMC
What do you think: are higher fees for LPs and lower token issuance bullish or bearish for CAKE in the long run?
#PancakeSwap #DeFi #BNBChain #CAKE
$CAKE $BNB For reference only; not investment advice