Hi dimitris,
Thanks for your view. I understand that users would prefer for CAKE to be deflationary while staking APRs are high.
Unfortunately, this is something the protocol cannot sustain in the medium term mathematically. Please refer to this dune dashboard (https://dune.com/queries/3136760/5231335) for the history of the CAKE emissions. Staking emissions come via the CakePool emissions.
As CAKE is supported by the PancakeSwap protocol via revenue buybacks, CAKE can only stay deflationary if PancakeSwap revenues can buy back everything it emits. CAKE became deflationary during September 2023, in line with the staking emissions reduction as voted by tokenholders here (Voting | PancakeSwap). You can see that tokenholders reduced the CakePool emissions significantly via the Dune dashboard, and this is a primary contributing factor to CAKE becoming deflationary.
Therefore, staking yields and (in/de)flation are very much related issues. It is hard to raise one without affecting the other. We do agree that there is a balance to be struck, and the current balance has allowed for this proposal of reducing max cap from 750M to 450M.
The Kitchen has been and will continue to improve the utility of the PancakeSwap protocol to increase revenue buyback potential, which may be able to sustain higher staking yields in the future.
Hope this provides clarity on the reason for the current path of deflation, staking yields, as well as the proposed max cap.