PancakeSwap Opens Vote on 88% LP Fee Share and 69% CAKE Emissions Cut
PancakeSwap’s live ballot proposes an 88% LP fee share and phased CAKE emissions cuts, with the final reduction tied to a 20% supply-reduction target.
Key Notes
- PancakeSwap’s ballot proposes an 88% LP share of v3 and Infinity swap fees, with v2 unchanged.
- Effective CAKE emissions would fall first to 11,000 daily and later to 7,000.
- The final step depends on the existing 20% supply-reduction target and community approval.
PancakeSwap has opened voting on The Flip, a proposal to give liquidity providers 88% of swap fees on v3 and Infinity while gradually cutting effective daily CAKE emissions by about 69%. The final emissions reduction would depend on a staged rollout and a token-supply milestone.
The ballot opened on October 21 at 08:07 UTC and closes on October 24 at the same time. It moves the plan beyond the discussion proposal CoinScreamer covered on October 14, with a revised implementation sequence.
Liquidity Providers Would Retain More Trading Fees
The proposed 88/12 split covers v3 fee tiers and Infinity across 11 networks, including BNB Chain, Ethereum, and Solana. Liquidity providers would receive 88% of swap fees, while the remaining 12% would go to the Treasury. The ballot says the non-stablecoin portion of protocol fees would continue funding CAKE buybacks.
The 88% figure is a share of fees generated by trading, rather than an annual yield on deposited capital. For every $1,000 in eligible pool fees, $880 would be allocated collectively to liquidity providers. Individual earnings would still depend on their positions and trading activity.
Standard EVM v3 tiers currently allocate about 66–68% to providers, according to the ballot. Solana’s existing share is 84%, making its proposed increase smaller. PancakeSwap v2 would remain unchanged, including its allocation of 23% of swap fees to CAKE burning.
Existing Infinity pools are a separate case. Their LP fee component is fixed at creation, so lowering the protocol component reduces the total fee charged to traders. The proposal’s example takes a 1% fee to roughly 0.76%, while preserving the 0.67% LP component. It should not be read as an identical increase in fee income for every existing pool.
Emissions Cut Would Happen in Two Steps
The Kitchen, PancakeSwap’s core team, proposes starting implementation in November, within two weeks of approval. The ballot sets out two stages:
- Networks switch one per week over approximately three months, while effective emissions decline from 22,500 to 11,000 CAKE per day.
- The final switch occurs when CAKE reaches the 20% supply-reduction target established under Tokenomics 3.0. The team expects this about 12 months after the first stage, with emissions settling at 7,000 CAKE daily.
That second stage means the complete reduction is not promised within the initial three-month rollout. The 20% target is measured against the April 2025 supply baseline; it is not a fresh commitment to remove another 20% from today’s supply.
Moving from 22,500 to 7,000 represents 15,500 fewer newly issued tokens per day, a reduction of approximately 68.9%. At the final rate, that would mean about 5.66 million fewer CAKE issued over a full year versus the starting rate, rather than tokens already burned.
The remaining 7,000 daily CAKE would fund the Pantry, an ecosystem growth fund that the Kitchen could use for marketing, partnerships and liquidity incentives. That allocation is not a direct payment promised to each CAKE holder.
PancakeSwap’s objective is to attract liquidity through a larger share of trading income while relying less on newly minted incentives. Whether liquidity grows will depend on providers’ decisions and market activity. The vote remains open, and the proposed settings have not been implemented merely because voting has begun.
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