November CAKE Emission Reduction

It’s time for our monthly vote on CAKE emissions!

Read before voting

Before you vote, make sure you understand the long and short term effects that changes to CAKE emission can have.

• Read and digest the CAKE Tokenomics documentation first: https://docs.pancakeswap.finance/tokenomics/cake/cake-tokenomics
• Read this proposal in full;
• Make up your mind, and cast your vote!

Why reduce emission?

The end goal of reducing emissions is to make 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.

What are the downsides?

Reducing CAKE that is distributed to farms has negative effects, and the proposal options we are providing take this into consideration.

If we were to burn 0.5 additional CAKE per block, as was the option in October’s vote, our CAKE-BNB APR may drop by roughly 15%. This is likely to have a negative impact on liquidity for our platform, and also affect the many projects we support here on PancakeSwap.

This is why, to keep our farms at a healthy APR, and to encourage liquidity on our platform, the options we are proposing this time round are much smaller: no change, 0.1 CAKE per block reduction, and 0.25 CAKE per block reduction.

To give you a better idea of the effect of reduced CAKE emissions on farm APR, consider the following examples to see how larger reductions might affect the APR:

Total Emission Reduction Per Block	No change	-0.1	-0.25	-0.5	-1	-2
CAKE Allocated to Farm & Lottery	4.5	4.4	4.25	4	3.5	2.5
CAKE Emissions / block	14.5	14.4	14.25	14	13.5	12.5
Est. CAKE-BNB APR (40x Multiplier)	36%	35%	33%	30%	24%	13%

Many projects’ farms with lower multipliers will also have their APRs significantly reduced.

But we need to become deflationary! Inflation is too high already!!!

We agree. It’s absolutely still the goal to keep CAKE “emission neutral” or “deflationary”. That said, given the current state of the market, it might be time to ease up on the aggressive emission reduction… for now. There’s a fine line between supply reduction, and damaging the farm APR.

We hear lot of voices pointing to CAKE inflation as a reason for recent price action, which is an understandable hypothesis. However, when you take a look at CAKE’s price trends in comparison to other AMM-related tokens, the similar charts suggest that there’s a more macro element at play here than just CAKE inflation.

So. To make sure we keep supply low, we’re working on more ideas that will instead contribute to bigger and bigger weekly CAKE burns. Stay tuned!

What's the current supply?

So far, effective CAKE emission per block has already dropped from 40 CAKE / block to only 14.5 CAKE / block.

We also burn CAKE from an increasingly wide number of sources every week. Check out the list here:

https://docs.pancakeswap.finance/tokenomics/cake/cake-tokenomics#other-deflationary-mechanics

Proposals:

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

❌ No change:

• 4.5 CAKE per block go to Yield Farms
• Total emissions: 14.5 CAKE per block (including Syrup Pools)

🔥 0.1 CAKE per block (0.22%) reduction to farm rewards:

• 4.4 CAKE per block go to Yield Farms
• Total emissions: 14.4 CAKE per block (including Syrup Pools)

🔥🔥 0.25 CAKE per block (0.56%) reduction to farm rewards:

• 4.25 CAKE per block go to Yield Farms
• Total emissions: 14.25 CAKE per block (including Syrup Pools)

⚠️Please note⚠️

One option must have a majority of 50%+ at the end snapshot in order to win the vote and be executed. If none of the options get over 50% of the vote, we'll create a new proposal.