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PancakeSwap floats fee overhaul and 69% CAKE emission cut

PancakeSwap's core team has proposed raising fee shares for liquidity providers to 88% while slashing daily CAKE token emissions to 7,000, triggering pushback from community members concerned about token burns.

Graphic showing the PancakeSwap bunny mascot logo on a cyan background beside a bull in a green field, with news text at the bottom about The Flip proposal.
Image: @BSCNews

PancakeSwap's core development team, known as The Kitchen, published a governance proposal titled "The Flip" on the protocol's forum on Oct. 14, according to Unchained. The plan proposes giving liquidity providers in v3 and Infinity pools 88% of swap fees across all 11 supported chains, including BNB Chain, Ethereum, Base, and Solana. Liquidity providers currently receive between 66% and 68% of fees, with the remaining 12% under the new model slated to flow into the PancakeSwap Treasury.[2]

Alongside the fee adjustment, the proposal would slash daily CAKE emissions from 22,500 to 7,000—an effective 69% reduction eliminating roughly 15,500 minted CAKE per day, or 5.7 million annually. The remaining 7,000 daily CAKE would fund a new ecosystem pool called the Pantry to support marketing, partnerships, and liquidity seeding. PancakeSwap's team estimated that liquidity providers would have earned roughly $62 million more on 2025 trading volume under the proposed split, arguing that platform activity, rather than new token emissions, should drive future growth.[2][3]

The proposal has faced notable resistance from tokenholders in the forum, with multiple commenters arguing that CAKE burn rates would drop without v3 and Infinity fee contributions. The team asserted that existing v2 pools—which remain unchanged and continue allocating 23% of swap fees to burns—would maintain CAKE's net deflationary trajectory. The plan has not yet advanced to a Snapshot vote, but if approved, implementation would begin in November and conclude by late January 2027.[1][2]

Key facts

  • PancakeSwap's core team proposed "The Flip" on Oct. 14 to allocate 88% of swap fees in v3 and Infinity pools to liquidity providers, up from 66% to 68%.
  • The proposal directs the remaining 12% of swap fees from v3 and Infinity pools to the PancakeSwap Treasury across 11 supported chains.
  • Daily CAKE emissions would drop by roughly 69%, falling from 22,500 to 7,000 tokens per day.
  • The 7,000 CAKE issued daily would fund the Pantry, a growth pool designated for marketing, partnerships, and seeding liquidity.
  • The team estimated liquidity providers on v3 and Infinity pools would have earned about $62 million more in fees on 2025 trading volume under the new model.
  • PancakeSwap v2 pools would remain unchanged and continue directing 23% of swap fees to CAKE burns.
  • Early forum feedback was largely critical, with users voicing concern over reduced CAKE burns, and no date has been set for a Snapshot vote.

Sources · 3 sources

  1. LS

    Laura Shin@laurashinPost on X ·

    PancakeSwap's "The Flip" proposal would send a 12% protocol fee on v3 and Infinity to the treasury and route 7,000 CAKE a day to a new growth fund called the Pantry. Most early forum replies from holders oppose it. https://t.co/LDQT3z4Tcf

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  2. UN

    UnchainedArticle ·

    PancakeSwap Floats Handing Liquidity Providers 88% of Swap Fees While Cutting CAKE Issuance PancakeSwap’s core team wants liquidity providers on its newer pools to keep far more of the trading fees they generate, and to rely less on freshly minted CAKE to attract them. In a forum post published on Oct. 14, the team, which posts as The Kitchen, laid out a plan it calls “The Flip.” Under the plan, liquidity providers on v3 and Infinity pools would take home 88% of swap fees on each of the 11 chains PancakeSwap supports, among them BNB Chain, Ethereum, Base and Solana. LPs on most pools currently keep between 66% and 68%. The remaining 12% would go to the PancakeSwap Treasury. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . Fewer Tokens Minted The proposal pairs the fee change with a cut in daily CAKE emissions from 22,500 to 7,000 , which the team described as an effective reduction of about 69% . That means 15,500 fewer CAKE created each day, or roughly 5.7 million a year. The 7,000 CAKE still issued daily would fund a new ecosystem pool called the Pantry , which the team said it would spend on marketing, partnerships and seeding liquidity in new pools. “Growth is paid for by activity on the platform, not by minting more CAKE,” the post said. By the team’s math, LPs on v3 and Infinity would have collected about $62 million more in fees on 2025 trading volume under the new split. Fee tiers for traders would stay the same. The v2 pools, whose fees are hard-coded, would not change and would keep sending 23% of their swap fees to the CAKE burn. For existing Infinity pools, where LP fees were locked in at creation, the smaller protocol cut would lower the total fee instead. A 1% pool, for example, would drop to about 0.76%. The team argued that “v2 alone keeps CAKE net deflationary,” pointing to an average net supply drop of about 190,000 CAKE per week over the past 10 weeks. It said that pace keeps CAKE on track for the roughly 20% supply reduction by 2030 set under Tokenomics 3.0 , which passed in April 2025, with supply already down 11.5% since then. Holders Push Back Most early replies on the thread were critical, and several commenters said burns would shrink. “v3 and Infinity stop burning CAKE. Why don’t you state this clearly?” wrote a user posting as Juapia, who suggested routing part of the 12% to burns. Another user, matrdolfo, who said they have held CAKE since 2021, wrote that they were “fundamentally opposed to the final outcome.” A third, PancakesLover, wrote, “I would personally vote against this change.” CAKE traded at $2.20 on Oct. 15, down about 6.8% over 24 hours, according to CoinGecko data . In December 2023, PancakeSwap’s community voted to cut CAKE’s maximum supply from 750 million to 450 million. Holders approved a second cut in January 2026, lowering the cap to 400 million in a Snapshot vote that closed Jan. 19. If The Flip passes, rollout would start in November and wrap up by the end of January 2027, according to the proposal. The plan has not yet gone to a Snapshot vote, and the team said it “will review all feedback before publishing the final proposal for voting.” No vote date has been set. Related Listen: How Across Protocol’s Equity Pivot Puts Crypto’s Broken Tokenomics in Focus The post PancakeSwap Floats Handing Liquidity Providers 88% of Swap Fees While Cutting CAKE Issuance appeared first on Unchained .

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  3. BS

    BSCN@BSCNewsPost on X ·

    Is $CAKE about to get even more deflationary?! Under a new proposal called ‘The Flip’, @PancakeSwap would reinvent its token mechanisms. The proposal would see liquidity providers on PancakeSwap v3 and Infinity take home some 88% of all swap fees. It would also reduce $CAKE token emissions from 22,500 to 7,000 per day, potentially making the asset all the more scarce.

    Open source