Proposal to migrate vCAKE to veCAKE

Proposal to migrate vCAKE to veCAKE

We propose to migrate PancakeSwap’s voting rights from vCAKE to veCAKE. If this proposal passes, veCAKE will become the measurement of a user’s voting power in PancakeSwap’s governance system.

Background of veCAKE

veCAKE was a culmination of many major PancakeSwap milestones - CAKE becoming deflationary, establishing a wide multichain reach, and launching our V3 concentrated liquidity pools. These three factors had to be in place in order for veCAKE to be feasible and effective.

Now, we look towards the veCAKE system to further CAKE locking and deflation, onboard the liquidity of new projects in our multichain deployments, all while leveraging our highly capital efficient V3 pools.

Additionally, via this proposal, veCAKE holders will be able to participate in PancakeSwap’s governance system, ranging from protocol adjustments to gauge approvals.

veCAKE’s Governance Rights

This is the scope of governance topics that veCAKE holders can vote on:

1. [Core] High-level CAKE emission adjustments (allocating CAKE to Core Pools and other high-level categories)
2. [Core] Protocol adjustments (product changes, fee changes)
3. [Core] Multichain warchest spending
4. Regular gauges voting (every 2 weeks)

Similar to the vCAKE system now, we propose that Core topics must be voted on by veCAKE holders, but can only be proposed by the PancakeSwap Core Team.

Gauges System

Our veCAKE / gauges system works in 14-day epochs and launched on 23 Nov, 0000 UTC.

Throughout Days 1 to 13 of a given epoch, veCAKE holders can take part in regular gauge weight voting on PancakeSwap’s frontend.

The more votes a gauge receives, the more CAKE emissions will be directed to the liquidity pair in the next epoch. Voting will close on Day 13, after which PancakeSwap will vote with ~40% of the total voting power for core pairs that derive high protocol revenue.

We welcome project teams to apply for gauge approvals on PancakeSwap’s forum, and discuss with our community members.

After the Kitchen reviews the application, if appropriate, the gauge will be added and veCAKE holders can assign voting weights to them in the same epoch.