CAKE Tokenomics Proposal 3.0: True Ownership, Simplified Governance and Sustainable Growth

[Muz_FE]

Hey Hubert, this is a good comments but here is my thoughts.

@Hubert

the main issue is Magpie canibalising most rewards

The problem is not about Magpie but the inefficiency and complexity of VeModel. If it wasn’t for Magpie those issues would have been raised anyway.

@Hubert

An easy fix would be to cap the mCAKE, mPENDLE, mBTC, msweth, mstETH, MGP, and CKP pairs to 0.25% of inflation and your capital allocation will be way more efficient.

These pairs don’t bring much value to Pancake as they are pretty much all fully depegged by design, and therefore, users are trapped and can’t trade in or out.

This would only hurt those projects further more and won’t fix issues from the inefficiency of the veModel. Therefore not fix the root cause of the problem the proposal is attempting to solve here.

@Hubert

These pairs don’t bring much value to Pancake as they are pretty much all fully depegged by design, and therefore, users are trapped and can’t trade in or out.

Wether they are depegged or not is not what matter. The most important thing is to have an efficient way to direct $CAKE on pools that actually bring volume & burn $CAKE.

@Hubert

Destroy the trust of protocols building on top of PancakeSwap

This is true but on the other hands a simpler tokenomic will onboard more holders, make the whole PancakeSwap ecosystem less complex, more efficient and more valuable to $CAKE holders.

@Hubert

Loose a lot of coincentives from projects engaging in bribing

They are currently part of the problem since they contribute to $CAKE emission to low volume pools instead of pools that bring value to the protocol

@Hubert

Loose an important revenue stream for CAKE holders

$CAKE holders won’t have any revenue stream but the burn will be more efficient and they will get less dilution. While at the same time benefit from perks like IFOs and Binance TGE. Making the ecosystem healthier

@Hubert

Loose a mechanism that favors long term alignment of holders and reduces the sell pressure in highly volatile times.

We ve already seen during this cycle veCAKE didn’t reduce $CAKE selling pressure, $CAKE is currently trading at levels below the FTX collapse

If implemented this proposal will benefit $CAKE way more since product emission will be dropped by 43% & Ecosystem Growth by 50%. Those are huge dropped in selling pressure

@Hubert

pools that generate fees get the emissions

This is what that new proposal is about as mentionned below

@ChefMaroon

Direct Emissions Management: Instead of relying on the veCAKE system, the PancakeSwap team will directly manage emissions. This new approach will allocate rewards based on real-time data and prioritize high-volume liquidity pools, improving liquidity efficiency by 30-40% and contributing to a more sustainable ecosystem.