𧩠$CAKE : IS REDUCING EMISSIONS ENOUGH TO CREATE VALUE?
PancakeSwapâs âThe Flipâ raises an important question: if liquidity providers get more benefits, what do CAKE holders get?
According to the official proposal, voting is scheduled to end on October 24:
âȘïž The goal is to raise the fee share for LPs (liquidity providers) to 88% on v3 and Infinity; v2 remains unchanged.
âȘïž CAKE emissions are expected to decline in stages from 22,500 to 11,000, then 7,000 tokens per day.
âȘïž The final step is tied to a goal of reducing the total supply by 20%. This is not the emission rate taking effect immediately.
One detail worth reading carefully: under the proposal, non-stablecoin protocol fees will still be used to buy back CAKE. So it would be inaccurate to say the buyback mechanism is being removed entirely.
My take:
Reducing the number of new tokens helps limit dilution. But to assess the value for CAKE holders, we need to look at both the fee flows used for token buybacks and the amount of new issuance.
Giving LPs a larger share of fees could help attract liquidity. However, increased protocol activity does not automatically mean token holders benefit proportionally. There needs to be a mechanism that turns that growth into tangible value.
Iâm more interested in how much CAKE is bought back, burned, and issued NET after the changes than in an isolated percentage cut to emissions.
This is still a proposal up for a vote; we shouldnât draw conclusions from vote percentages at some earlier point in time. And if youâre spot trading, donât chase the price just because you see the words âsupply reduction.â
If you had to choose, would you prioritize increasing liquidity or maintaining stronger token buyback fee flows? đ
Source: PancakeSwap Governance, âThe Flipâ proposal opened on 10/21/2026; voting is scheduled to end on 10/24/2026.
PancakeSwapâs âThe Flipâ raises an important question: if liquidity providers get more benefits, what do CAKE holders get?
According to the official proposal, voting is scheduled to end on October 24:
âȘïž The goal is to raise the fee share for LPs (liquidity providers) to 88% on v3 and Infinity; v2 remains unchanged.
âȘïž CAKE emissions are expected to decline in stages from 22,500 to 11,000, then 7,000 tokens per day.
âȘïž The final step is tied to a goal of reducing the total supply by 20%. This is not the emission rate taking effect immediately.
One detail worth reading carefully: under the proposal, non-stablecoin protocol fees will still be used to buy back CAKE. So it would be inaccurate to say the buyback mechanism is being removed entirely.
My take:
Reducing the number of new tokens helps limit dilution. But to assess the value for CAKE holders, we need to look at both the fee flows used for token buybacks and the amount of new issuance.
Giving LPs a larger share of fees could help attract liquidity. However, increased protocol activity does not automatically mean token holders benefit proportionally. There needs to be a mechanism that turns that growth into tangible value.
Iâm more interested in how much CAKE is bought back, burned, and issued NET after the changes than in an isolated percentage cut to emissions.
This is still a proposal up for a vote; we shouldnât draw conclusions from vote percentages at some earlier point in time. And if youâre spot trading, donât chase the price just because you see the words âsupply reduction.â
If you had to choose, would you prioritize increasing liquidity or maintaining stronger token buyback fee flows? đ
Source: PancakeSwap Governance, âThe Flipâ proposal opened on 10/21/2026; voting is scheduled to end on 10/24/2026.
