Proposal to Increase CAKE Trading Fee Buyback and Burn

One of the key goals of the kitchen has always been to make CAKE emissions-neutral and eventually deflationary. This goal can be achieved by emission reductions, and also increasing the amount of CAKE we burn. Therefore, we are proposing to utilize more trading fees to support the CAKE buyback and burn mechanism. We are proposing to do this via reallocating some of the portion of the trading fees that goes to our treasury to the CAKE trading fee buyback and burn.

Right now, of the 0.25% trading fee, 0.05% of the fee is sent towards CAKE buyback and burn. We propose to increase the buyback and burn allocation to 0.0575%, with the extra 0.0075% coming out of our treasury allocation - reducing the CAKE trading fee allocation that enters the treasury from 0.03% to 0.0225%.

If this proposal passes, we aim to implement this change by the next burn. We will also have a 2-day voting period for this proposal.

Trading Fee Allocations	Current	Proposed	% Change
CAKE Buyback & Burn	0.0500%	0.0575%	+15%
PCS Treasury	0.0300%	0.0225%	-25%
LP Fees	0.017%	0.017%	No change
Total	0.25%	0.25%	No change

Read Before Voting

Before you vote, please make sure you understand the long and short term effects that changes to token swap trading fee allocations can have on CAKE Tokenomics.

• Read and digest the CAKE Tokenomics documentation and Trading Fee documentation first
• Read this proposal in full
• Make up your mind, and cast your vote!

Recap: Token Swap Trading Fees!

When you make a token swap (trade) on the exchange you will pay a 0.25% trading fee, of which:

• 0.17% - Returned to Liquidity Pools in the form of a fee reward for liquidity providers.
• 0.03% - Sent to the PancakeSwap Treasury.
• 0.05% - Sent towards CAKE buyback and burn.

Example: When you buy $100 worth of CAKE using BNB, you pay $0.25, of which:

• $0.17 goes towards CAKE-BNB LPs,
• $0.03 is sent to the PancakeSwap Treasury, and
• $0.05 is sent towards CAKE buyback and burn.

Why Burn CAKE?

The end goal of burning CAKE is to reduce net CAKE emissions, ultimately making CAKE “emission neutral” or “deflationary”. That means, on average, the amount of CAKE burnt per block will be more than the amount of CAKE minted.

Voting Options:

CAKE holders can vote for any one of these options at the bottom of this page.

🔥 Increase CAKE Buyback and Burn

– Proposed Trading Fee Structure is Implemented

0.25% trading fee, of which:

• 0.1700%: Returned to Liquidity Pools in the form of a fee reward for liquidity providers.
• 0.0225%: Sent to the PancakeSwap Treasury.
• 0.0575%: Sent towards CAKE buyback and burn.

❌ No Change:

– Current Trading Fee Structure is Retained

0.25% trading fee, of which:

• 0.17%: Returned to Liquidity Pools in the form of a fee reward for liquidity providers.
• 0.03%: Sent to the PancakeSwap Treasury.
• 0.05%: Sent towards CAKE buyback and burn.