The current locked staking pool for PancakeSwap's native token, CAKE, has been a widely unaddressed disaster to the ecosystem, pooling and exacerbating the eventual inflationary dumps of CAKE.
The lack of flexibility and limited incentives have resulted in less stable token prices and decreased user engagement. To address this issue, we propose the retirement of the locked pool follwed by implementation of a new flexible pool that combines the various syrup pools and platform revenue share, providing users with an all in one inclusive staking opportunity and greater control over their investment.
This change would incentivize long-term holding, reduce CAKE emissions whilst providing a higher APR and increase engagement and confidence on the platform, ultimately resulting in a more stable token price and increased overall value for PancakeSwap and its users.
As the recent tokenomics discussion propsal seemed to be split between both extemes of the community, we present this solution as a middleground alternative.
The new all-in-one pool for PancakeSwap will combine all available syrup pool rewards, a portion of the current CAKE emissions, and a percentage of the revenue earned on the platform into a single flexible staking pool. By pooling these resources, the new staking offer will allow more diverse and attractive APR returns to users, while reducing the overall emission of CAKE.
The lost APR from the reduction in CAKE emissions will be substituted with other project tokens and stable coin earnings from the platform's revenue. This will not only return user confidence and incentivize users to hold their assets in the new pool for longer periods, but also promote the growth and development of other projects on the platform. Overall, the new all-in-one pool will offer greater flexibility and control for users, while also promoting the long-term sustainability and success of PancakeSwap.
Further, by substituting and combining multiple rewards sources into one, we can mitigate the effects of CAKE being dumped, instead users will seek to sell their syrup and stable rewards to buy more CAKE to continue staking.
We recommend that CAKE earnt should be auto-compounded, however the syrup rewards and stable coins must be claimed and do not attribute to users staked amount.
Allowing this flexible all in one model to take the place of our current model would be crucial to a sustainable and attractive staking mechanism on PancakeSwap.
The implementation of the new all-in-one pool for PancakeSwap will have a positive effect on the overall price of the CAKE token.
By reducing the actual CAKE emissions and substituting them with other project tokens and stable coin earnings from the platform's revenue, the new pool will help move PancakeSwap towards a deflationary model, promoting scarcity and attractiveness to increase the value of the token over time.
Additionally, the flexibility of the all-in-one pool, which allows users to easily move their staked assets between different opportunities such as IFO's and trading competitions, this will drive more investors to participate freely in the pool, resulting in increased demand for CAKE and ultimately leading to an increase in its price.
Overall, the new pool will provide a more attractive and sustainable investment opportunity for users, while also promoting the long-term growth and success of PancakeSwap.
As part of a pro-active move towards an ultra-sound cake, we feel that the best way to achieve this whilst also remaining attractive to investors is to develop further utilities and burn mechanisms.
We also recommend that the allocated buyback and burn fund be increased whilst the price of CAKE is tanking, to increase its overall beneficial impact and effectiveness.