look @ChefMochi… i’m looking to Pancakeswap as a business. The cake mint is equivalent to budget to spend and the cake burn is equivalent to earning from our products. How does a business behave to be solid? He needs to spend less than earnings, in other words on Pancakeswap case we need deflation. So, why doesn’t pancakeswap provide a maximum spending rule? I mean, anything about 80% that we earned on last month? or last quarter?
We’ll have this month around 800,000 cakes to Vecake more around 120,000 cakes from “Other Product Usage” so the mint will be around 920,000 cakes.
Now, we have:
800,000 from Vecake is equal 87% of total emissions
120,000 from “Other Product Usage” is equal 13% of total emissions
If we have in December 1,500,000 cake earnings (burn) we’ll have on next month or quarter this values to mint (spend)
80% of 1,500,000 = 1,200,000 to spend
20% of 1,500,000 = 300,000 to burn
how will spend 1,200,000 cakes?
87% of 1,200,000 = 1,044,000 will be distribuited to Vecake
13% of 1,200,000 = 156,000 will be distribuited to “Other product usage”
If u can’t spend at “Other Product Usage” you can put a limit on this and you can distribute the rest to Vecake
So u’ll have:
Share buyback (burn cake)
Dividend distribution (Cake pool + Cake Earnings)
Earnings and Spends under control regardless of price. If the prices up a lot, you’ll probably earning less (in cake), but now you have 80% spend, so on the next month u’ll mint less cake to face this. Also if the prices down a lot, u’ll make same projection but on the contrary. Maybe 80% is not good. Maybe 75%, Maybe 85% I don’t know. But I have sure that it can works and best of all, we will have a projection of what Cake will be like in 10 years. I love Cake, I’ve been an investor for 3 years, I have around 0.10% of the capitalization and I intend to remain an investor, however there are many changes in the format. We have to find a format that stands up, both at low cake prices and at high cake prices.