PancakeSwap has proposed major improvements to the CAKE token economics, suggesting setting CAKE's annual inflation rate at 3% to 5% and transitioning to a low-staking inflation CAKE staking model with real returns and utility, and a discussion proposal has been released.

Specific suggestions include proposing a staking distribution of 0.35 to 1 CAKE/block instead of 6.65 CAKE/block; CAKE stakers will be allocated 5% of transaction fees per month from the PancakeSwap V3 0.01% and 0.05% fee tiers; and increasing the CAKE release weight for long-term stakers. The percentage of transaction fees allocated to buybacks and burns will remain unchanged.