TL;DR
- Cakepie DAO rejected PancakeSwap’s Tokenomics 3.0 proposal, which aims to eliminate veCAKE, staking, and revenue sharing.
- PancakeSwap plans to reduce daily emissions and shift the model toward deflation. Cakepie warns of a loss of decentralization.
- Cakepie denounced attempts to manipulate governance and proposed adjustments to the current system instead of eliminating it, in order to preserve long-term incentives.
Cakepie DAO strongly rejected PancakeSwap’s Tokenomics 3.0 proposal, following the exchange team’s plan to eliminate the veCAKE governance system, along with staking, gauge-based voting, and revenue sharing.
This decision triggered a strong reaction from one of the ecosystem’s key players, which currently has 13 million CAKE tokens locked as part of its long-term economic strategy.
The veCAKE model was introduced to encourage user participation, enable decentralized decision-making, and align incentives within the platform. Cakepie, which built its entire infrastructure around this system, warned that removing it would affect the ecosystem’s structure and weaken trust in current governance mechanisms. It also stated that it learned about the proposed changes at the same time as the public, despite having collaborated with PancakeSwap for years.
PancakeSwap’s Proposal
The Tokenomics 3.0 proposal outlines a restructuring focused on reducing CAKE’s daily emissions from 40,000 to 22,500, aiming to reach an annual deflation rate of 4%. PancakeSwap argues that veCAKE has not met expectations, citing an overly complex governance structure and inefficient resource distribution through incentivized voting.
In addition to removing staking, PancakeSwap’s proposal includes the unlocking of all locked tokens without penalty and the reallocation of revenue to token burns, aiming to lower operational costs and simplify the user experience. However, Cakepie warned that these changes would benefit large token holders and restrict the participation of those who committed to the protocol for the long term.
Accusations of Manipulation
The disagreement also led to accusations of potential manipulation in the governance process. Cakepie reported that multiple wallets locked approximately 25 million CAKE shortly before the announcement, which could suggest an attempt to influence the vote without respecting fair participation principles.
As an alternative, the DAO proposed modifying the model without removing it entirely. Suggestions include directly incentivizing value-generating pools, sharing fees with active voters, and allowing early exits with penalties. The outcome of the vote will determine the path PancakeSwap will take in the coming weeks
