Proposal for Emissions Redirection for v3 Products

Proposal for Emissions Redirection for v3 Products

Dear Community, we have some exciting developments under way to deepen our position as the premier trading venue on BNB Chain, and are proposing to redirect 1 CAKE / block from the Staking allocation to the Trading allocation. We can’t say too much, but this is related to our v3 developments:

This 1 CAKE / block will be used for yet-to-be-released developments that would significantly reinforce our trading volumes, and our position as the best multichain DEX.

Implementation and Timeline

As these products will have a significant impact on our competitiveness and value offering, due to reasons of confidentiality and competitiveness, we are proposing the following format for the usage of this 1 CAKE / block, similar to the way we did our Aptos Deployment:

1️⃣ Proposal for 1 CAKE / block redirection

2️⃣ Proposal passes, and PancakeSwap team redirects 1 CAKE / block

3️⃣ After some time, PancakeSwap team deploys the products

4️⃣ After the products reach a steady state, PancakeSwap team posts a Confirmation Proposal, to check if community approves of the deployment

This governance process has worked well in terms of including the community in our decisions, and at the same time, ensuring that the PancakeSwap team is able to work on the latest and greatest products with confidentiality.

As there are no leaks, this will allow us to go out with a bang, make a huge impact, and 🔥 dominate 🔥.

Visualizing the Changes

(This image is extracted from our Tokenomics Docs)

Existing distribution for the Trading and Staking allocations:

• Trading: ~2.11 CAKE per block
• Staking: ~7.65 CAKE per block

If this proposal is passed and implemented, the new distribution will be as follows:

• Trading: ~3.11 CAKE per block
• Staking: ~6.65 CAKE per block

Impact on CAKE Pool

As of 15 Feb 2023, APRs for flexible and fixed terms are ~2.30% and ~48.20%. With this proposal, the respective APRs will be ~2.00% and ~41.90%.

This is still highly competitive when compared with other established DEXes’ staking yields, which range from 1.42% to 18.97%.