PancakeSwap Users Vote for Another Cake Emission Reduction, Relaunching Governance in V2

PancakeSwap opened emissions voting and the community decided to reduce CAKE emissions.

By
John Tunney
on
July 2, 2021
Category:
BSC News

The PancakeSwap DEX announced via a twitter post the other day on June 29th that they have once again opened voting on PancakeSwap to speed up the process of becoming emission neutral. This goal aims to balance  the amount of CAKE (PancakeSwap’s native token) being produced with the amount being burned. This creates a fixed supply of CAKE. PancakeSwap notes that long term this will greatly benefit CAKE holders, but in the short term will negatively affect CAKE farms APRs. It is important to note that CAKE is still inflationary according to the graphic below.

Source

Currently, CAKE emits 20 CAKE per block with a daily CAKE emission of 530,000 daily. The options for voting now, which can be found here, looks to determine 1 of 3 things: 

  • That there is no change to block emissions
  • That there is a 5% reduction to farm rewards = 9.5 CAKE per block goes to farm rewards; Total Emissions 19.5 CAKE per block including syrup pools 
  • That there is a 10% reduction to farm rewards = 9 CAKE per block goes to farm rewards; Total Emissions 19 CAKE per block including syrup pools 
Source


The Governance Vote Concludes

Through the governance process, users voted for CAKE emissions to fall from 20 CAKE per block to 19 CAKE per block. This reduces emissions brings PancakeSwap’s CAKE closer to an emission neutral token.  

Source

 

Voting on Future Proposals!

Voting on this proposal has concluded. For future reference, voting free and weighed based upon how much CAKE an investor holds; a CAKE holder of 100 CAKE has more voting power then a CAKE holder of 60 CAKE. Voting is simple and takes less than a minute. Let your voice be heard! 


What is PancakeSwap

PancakeSwap is the leading decentralized exchange on Binance Smart Chain, with the highest trading volumes in the market. PancakeSwap runs on Binance Smart Chain, a blockchain with much lower transaction costs than Ethereum or Bitcoin. As a result, trading fees are lower than other top decentralized exchanges, and the protocol offers a secure place to farm yields thanks to their Syrup pools.


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John Tunney

John Tunney is an accomplished analyst and crypto enthusiast. The UCLA alum has been actively reporting and blogging for 3 years, and has a passion for all things finance.

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