After a Successful DAO Vote, Pancakeswap decided to Launch the Phase 1 of the $gCAKE (Cake Gold) Distribution

Background

• Pancakeswap's DAO governance is considering altering Pancake Gold allocation rate. On December 1st, 2023, a newly approved function was implemented where 5% of swap volume fees are converted to $gCAKE. $gCAKE has the potential to increase swap transaction volume and reward holders, but will $CAKE face market cap reduction if a derivative token supply is increased, or will the increase in bridge volume contribute to greater value for users.

Proposal

• Increase $gCAKE from 4% of swap fees to 8% swap fees to further incentive swap usage and reward the Pancakeswap community. Maintain $gCAKE biannual rewards distribution timeline to incentive swap prioritization and bolster market sentiment. Currently, for every $1M of swap fees generated, $50,000 will be allocated to the $gCAKE treasury. This proposal is suggesting to contribute $75,000 to $gCAKE for every $1M of swap fees, which will later be distributed to DEX users based on wallet activity. A majority vote of 51% or greater is required for the protocol to implement this new addition.

What is $gCAKE and when is the first distribution?

• Pancakeswap DAO has voted to implement $gCAKE rewards for the first distribution which is live for users from December 1, 2023 to December 15, 2023. Each $CAKE holder is eligibility if their wallet is older than 7 days and they have made a txn with $CAKE. $gCAKE distribution rate will be based on wallet solvency levels and bridge volume.

If you haven't already, check HERE if you are eligibility for the Phase 1 $gCAKE Rewards Distribution.

Execution

• If this proposal receives a majority vote of 51% of greater, $gCAKE treasury allocation rate will be increase from 4% to 8% to further reward swap users and hopefully increase overall swap volume.

If the new rewards allocation rate is accepted it will be implement in the 2024 Q2 distribution.

Don't forget to check if you are eligible for the Phase 1 $gCAKE distribution if you have been an active $CAKE trader and DEX user.