Many times, I’ve been asked about veCake and the benefits for holders who lock their tokens for 4 years. After listening to the recent AMA, I’d like to clarify some points and share my thoughts from an investor’s perspective, without waiting for an official response.
Every veCake controls 401,644 / 27,528,838 = 0.0146 Cake every two weeks, or 0.0146 x 26 = 0.38 Cake per year, which, as mentioned, translates to a 38% APR. However, without a ve(3,3) incentivizing system integrated into PancakeSwap’s website, veCake holders turn to third-party platforms like HiddenHand to seek incentives. Last epoch I did not receive anything from hiddenhand because of the veCake update and they did not help me earn my rewards which is very unfair since I sent my emissions on selected pools. This is the downside! I’ve repeatedly emphasized the need for a bribe marketplace, but no one seems to listen. Moderators try to convince everyone that this is the right way maybe because this is aligned to the guidelines. I don’t blame them this is how big ORGs work. While the Chefs are undoubtedly intelligent and knowledgeable about DeFi, tokenomics, and platform building, they lack an investor-centric perspective. This is probably because they see things only from their standpoint as platform users and developers, not as investors who locked their tokens for 4 years when the price was $12. Over the past 24 months, after 180 million unlocks, the Cake/BNB ratio has dropped by 75%, and the price has significantly declined compared to BNB.
From an investor’s perspective, I can say that the Chefs created a trap over the years by changing strategies based on investors’ commitment and lockings, while investors had no way to unlock or avoid losses as the rules kept changing. This wasn’t fair, and that’s why 180 million tokens have been unlocked and a lot of them withdrawn from veCake over the last two years. No one openly talks about it in chats or Telegram groups, but investors express their dissatisfaction by withdrawing their funds and leaving. To me, it seems that for the Chefs and developers, this is just a “side effect,” as their focus is solely on making PancakeSwap a user-friendly DEX, not an investor-friendly platform.
As an investor, I’ve tried to understand these dynamics as much as possible. While I feel disheartened by these developments, I still believe in the protocol and continue searching for opportunities. Perhaps this is because I cannot unlock my funds and leave, or perhaps because I am a strong believer with patience.
I wish someone with our perspective could join the board and design an investor-centric strategy, rather than focusing solely on a user-centric approach. This is what other platforms achieve with the ve(3,3) model, where everyone benefits (“3,3” originates from game theory and represents a win-win scenario).