Of course nobody knows what will happen with absolute certainty. I’m not claiming the new model will definitely work - but what we do know is that veCAKE clearly isn’t delivering as promised, so we need to try something different.
Just 3% of CAKE locked after 2 years demonstrates that people don’t connect with this model compared to traditional stake-and-forget. While rewards sound nice in theory, when mCAKE loses value daily, those rewards effectively become worthless. Nobody wants to lock new CAKE when: 1) The system is confusing, and 2) They can lose 10% of their value overnight. The risk isn’t worth it.
Yes, theoretically the peg could restore to 1:1 someday. But it hasn’t so far, and the CakePie team shows little interest in implementing ideas to fix it. I find it telling that CakePie responds quickly to criticism here but ignores critical user problems for months.
Let’s examine your arguments:
More bribes? Week in, week out on Telegram, people complain that bribes are less and less - that’s precisely why the CKP price has dropped so significantly. PancakeSwap has seen HUGE volume recently, yet bribes have dropped significantly. By your logic, they should’ve increased.
Rewards? They’re minimal when the peg deteriorates so rapidly. CKP has crashed to levels where rewards barely matter anymore.
The real-world data simply doesn’t support keeping the current system.
Why do you think that an increase in deflation from 2-3% to 4% will dramatically change the situation? Especially considering the destruction of the system and the huge unlock
Increased deflation is a side effect but the main contribution I see is in stopped profit sharing to everyone even myself. And yes I see tons of new tokens will flood the market so expecting the price drop by 30-40%, in bull market can be absorbed quickly if binnace wallet accumulated 25M in a couple of days buying 60M is not really big deal for whales. Capping the subdao to 5% and redicrecting those cakes to burn would be maybe good compromise for everyone. Current system will stay, subdao will receive less and deflation will be boosted so all winners except those who want to leave the lock… so maybe devs can give them opportunity to leave the lock e.g. collect from users viac PCS page who would be interested to unlock and then just to provide them this chance…like once per year and under some penalty you can leave… and now are all happy… oh except subdao receiving much less tokens of course.
This is not my opinion, they are data. Subdaos generating money, profitable companies. Look at Penpie when he was hacked as Pendle came to the front and helped his subdao and went afloat and how they work well with the vetokenomic, Pendle is bigger than PSC and now you say that you want to remove the vetokenomic that was the advance that I lifted you because before they were a simple swaper with liquidity and Farming pools, they are returning to 2020 This is the most rookie movement at this time in the Crypto industry and makes it sad that it comes directly from Pancakeswap
I would like to propose a modified version that achieves the same goals without sacrificing the existing CAKE ecosystem participants:
1. Retirement of Revenue Sharing: Same as the existing proposal to boost the burn rate significantly.
2. Reducing Emissions: Same as the existing proposal to further increase the deflation rate.
3. Keeping the veCAKE but using the Convex model for Gauges Voting System: In this model, PancakeSwap will host the bribe market. All project partners will send their bribes to the PCS bribe market. All subDAOs will send their votes to PCS bribe market to get the respective portion of their bribes.
With this model, PCS veCAKE holders will have a fairer bribe APR as they are able to get the bribe which is proportional to their veCAKE amount.
With this model, CakePie will need to streamline their product by consolidating mCAKE and CKP into a single token. To increase the rewards for CAKEPie users, I suggest CAKEPie to increase their protocol revenue sharing with their token holders since PCS revenue sharing has been retired in order to accelerate the deflation rate.
Keeping subDAO model is important to lock the CAKE forever (subDAOs are extending their 4-year lock from time to time). It is equivalent to burning the CAKEs indirectly.
Massive unlock of CAKE is too risky for CAKE price. Instead of retiring veCAKE, we should enhance and strengthen the veCAKE model.
The subDAO ecosystem was set up by PCS team. Therefore, it is important to gain users and project partners’ trust by not breaking them. Moreover, the majority of the subDAO users are also CAKE loyalists.
4. Emissions Management: The Kitchen can keep majority of their votes in order to incentivise high trading volume LP pools accordingly. Kitchen’s votes and users’ votes could coexist so that the Kitchen is able to ensure the trading volume and burn rate are well taken care of while the bribe APR remains attractive to veCAKE holders.
The proposal critical problem is idea that emission control should be passed from CAKE owners to the project team. The emission and incentives control is the key value of the CAKE token as of now. As a CAKE holder I see zero reasons to transfers my most valuable privilege to project team.
I hope (and pretty sure) that StakeDAO and other staking pools will vote against this proposal.
