The team of developers behind PancakeSwap has suggested significant improvements to CAKE tokenomics as they want to move the token towards a deflationary model based on real yield and burn.
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In a forum proposal published on Tuesday, PancakeSwap proposed changes, which — if approved — would lower annual CAKE supply inflation rate to 3-5% from the current 21-23%. The team particularly recommended that CAKE stakers would be allocated 5% of trading fees from PancakeSwap v3, to lower staking allocation to 0.35 – 1 CAKE/block instead of 6.65 CAKE/block and increase the token's emission weighting towards longer-term stakers.
PancakeSwap says the proposal aims to transform from the high-inflation CAKE staking model to a "low-inflation model with real yield and utility." The vote on the proposal is set to end on April 21.
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