# \[Proposal Discussion\] The Flip: Liquidity Should Get Paid More **URL:** \ **Category:** Tokenomics\ **Created:** [October 14, 2026, 7:48am UTC](https://forum.pancakeswap.finance/t/proposal-discussion-the-flip-liquidity-should-get-paid-more/1658 "2026-10-14T07:48:23Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![Chef\_Mustard](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.pancakeswap.finance/chef_mustard/32/520_2.png) [@Chef\_Mustard](https://forum.pancakeswap.finance/u/Chef_Mustard)\ **Post date:** [October 14, 2026, 7:48am UTC](https://forum.pancakeswap.finance/t/proposal-discussion-the-flip-liquidity-should-get-paid-more/1658/1 "2026-10-14T07:48:23Z")
# The Flip: Liquidity Should Get Paid More _ **The Kitchen proposes raising the LP fee share to 88%** _ ## **![image](https://europe1.discourse-cdn.com/flex005/uploads/pancakeswap/original/1X/5a26fbb6b13e27c616587097be6f2f2f277c2e3a.jpeg)** ## **TL;DR** The Kitchen proposes raising the LP share of swap fees to 88% on PancakeSwap v3 and Infinity across all 11 supported chains, up from around two-thirds on most pools today, with v2 unchanged; the remaining 12% protocol fee goes to the Treasury. Alongside this, effective CAKE emissions are cut by ~69%, from 22,500 to 7,000 CAKE per day, and those 7,000 CAKE go to the Pantry, our ecosystem growth fund. ## **What changes** Every v3 fee tier and Infinity pool moves to an 88/12 split on all 11 chains: BNB Chain, Ethereum, Arbitrum, Base, Solana, Robinhood, Monad, Arc, zkSync, Linea and opBNB. ![image](https://europe1.discourse-cdn.com/flex005/uploads/pancakeswap/original/1X/25c8ec5d305aa6b15ae3b3ae645fa4e672726e1b.png) _ **Notes** _ _ **1. v2:** _ _unchanged, as its fees are hard-coded. It remains our main CAKE burn engine, sending 23% of swap fees to burn._ _ **2. Existing Infinity pools:** _ _LP fees are fixed at pool creation, so the lower protocol fee cuts the total swap fee instead. For example, a 1% pool becomes ~0.76% (0.67% to LPs, ~0.091% to the protocol)._ _ **3. Protocol fee:** _ _the 12% on v3 and Infinity goes to the Treasury._ ## **What it means for LPs and traders** This proposal is built for the people who make PancakeSwap work every day: the LPs who supply liquidity and the traders who use it. ### **For LPs: more of every fee** Based on 2025 volume, LPs on v3 and Infinity would have earned ~$62M more in fees. For every $1,000 of swap fees a pool generates, LPs would keep $880: ![image](https://europe1.discourse-cdn.com/flex005/uploads/pancakeswap/original/1X/21db2beda2b8b4026a3559b713873b3323e1200c.png) The higher share applies automatically to every v3 and Infinity position on every chain. There is nothing new to claim, stake or lock: fees accrue to positions exactly as they do today; there are just more of them. ### **For traders: same fees, better execution** Fee tiers stay the same, so traders pay what they pay today. What changes is the depth of liquidity behind each trade. Today, LPs on most pools keep 66–68% of the fees they generate. At 88%, they earn roughly a third more from the same trading volume. LPs tend to add capital until returns settle back to a competitive level, so that extra income can support up to ~30% more liquidity in the same pools. For traders, that means: - **Less price impact:** the same trade moves the price less, up to ~20–25% less. - **Less MEV:** sandwich attacks and similar MEV profit from price impact, so deeper pools leave them less room. - **Better prices wherever they swap:** aggregators and wallets route to the deepest pools, so traders benefit whether they swap on PancakeSwap directly or through another front end. ### **A self-reinforcing cycle** The benefits build on each other. A higher LP share attracts more liquidity, deeper liquidity gives traders better prices, better prices bring more volume, and more volume means more fees for LPs, which attracts more liquidity again. ## **What it means for CAKE** CAKE is ahead of schedule on its Tokenomics 3.0 targets and stays on track for a 20% supply reduction by 2030 under this proposal. [CAKE Tokenomics 3.0](https://pancakeswap.finance/voting/proposal/0x79ef496c9737e48d9677a6e291ff2a549dee6729c9996398e453af8ecbf0ceb3), passed in April 2025, targeted a ~20% supply reduction by 2030. Eighteen months in, supply is already down 11.5% ([Dune dashboard](https://dune.com/pancakeswap/PancakeSwap-CAKE-Tokenomics)). ![image](https://europe1.discourse-cdn.com/flex005/uploads/pancakeswap/original/1X/69231a870db164e2a5cc901ffa3639dfcea205bd.png) ### Emissions cut and the Pantry With LPs keeping 88% of fees, we no longer need emissions at today’s level. We propose cutting post-veCAKE emissions from 22,500 to 7,000 CAKE per day, so 15,500 fewer CAKE are minted every day (~5.7M per year). The remaining 7,000 CAKE per day goes to a new ecosystem fund, **the Pantry**. Like a kitchen pantry, it keeps ingredients on hand to use where they are needed most. The Kitchen will deploy it flexibly, for example on marketing, partnership deals and bootstrapping liquidity in new pools. ### **Supply outlook** v2 alone keeps CAKE net deflationary. Using the average of the past 10 weeks, total supply falls by ~190k CAKE per week after emissions, about 9.9M CAKE or ~3% per year. At that pace, the remaining ~31.6M CAKE to reach the 2030 target is cleared around the end of 2029, before the end-of-2030 deadline. ![Dune CAKE Tokenomics dashboard; projection from the 10-week average net burn · April 2025 to end of 2030](https://europe1.discourse-cdn.com/flex005/uploads/pancakeswap/original/1X/7859ca1a3669dab80252977b5d5430dc009f3720.png) ## **Why “The Flip”** Over successive tokenomics proposals, the community has brought CAKE supply firmly under control, with supply down 11.5% since Tokenomics 3.0 alone, well ahead of schedule. The Flip shares the same goal, a stronger CAKE, and turns to what drives its value from here: how much people use PancakeSwap. **Liquidity is what brings people to PancakeSwap.** Traders go where they get the best price, and the best prices come from the deepest pools. LPs provide that depth, so rewarding them more is the most direct way to make PancakeSwap better for everyone who trades on it. **Growth funded by fees, not new supply.** The Flip cuts emissions by 15,500 CAKE a day and makes real trading fees the main way PancakeSwap attracts liquidity. Growth is paid for by activity on the platform, not by minting more CAKE. **Growth that comes back to CAKE.** As liquidity deepens and volume grows, PancakeSwap becomes larger and busier, and that is the strongest long-term support for CAKE and the community that holds it. ## **Rollout plan** Implementation begins in November 2026, within 2 weeks of the proposal passing, and is expected to take about three months, finishing by the end of January 2027. We will announce each chain as it goes live. ![Rollout timeline · 12 weeks](https://europe1.discourse-cdn.com/flex005/uploads/pancakeswap/original/1X/b3c504a4c658a580b3b53be55bd8ee589618a53a.png) ## **Share your feedback** We’re sharing this proposal on the forum for community discussion before it goes to a Snapshot vote. Whether you provide liquidity, trade or hold CAKE, we want to hear from you: what you like, what concerns you, and anything we may have missed. Please leave your thoughts in the comments below. The Kitchen will review all feedback before publishing the final proposal for voting. ---
**Author:** ![marcra](https://avatars.discourse-cdn.com/v4/letter/m/f14d63/32.png) [@marcra](https://forum.pancakeswap.finance/u/marcra)\ **Post date:** [October 14, 2026, 9:08am UTC](https://forum.pancakeswap.finance/t/proposal-discussion-the-flip-liquidity-should-get-paid-more/1658/2 "2026-10-14T09:08:13Z")
great idea. Hope will send $cake to 10 $ 🙂