PancakeSwap Devs to Transfer CAKE Token to Deflationary Model

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The PancakeSwap team has proposed changing the tokenomics of the DeFi project in order to move away from its current high-inflation model of the CAKE utility token to emission-neutral or deflation “with real returns and utility.”

This new version (CAKE Tokenomics v2.5) would reduce the annual CAKE emission from 20% to 3-5%, with lower staking reward – 0.35-1 CAKE per block versus 6.65 CAKE – and real profitability derived from protocol revenues.

Stakers will be allocated 5% commissions from PancakeSwap v3 with monthly levels from 0.01% and 0.05% depending on the duration of utility token blocking, and an increase in the weight of long-term stakers in the CAKE issue.

However, the developers have emphasized that the proposal will leave the % of the commissions allocated for the redemption and burning of CAKE, % from other products for the implementation of the above process, and the rewarding of the most loyal stakers with the largest share of emissions and trading fees unchanged.

The team looks forward to receiving community feedback through the feedback form and social media reactions.