PancakeSwap Governance Forum New Proposal: LP Share Proposed to Rise to 88%, CAKE Emissions to Be Cut by About 69%

October 14: The PancakeSwap team The Kitchen recently published "The Flip" proposal on the governance forum, planning to increase the LP fee share for v3 and Infinity on all 11 supported chains to 88%, with the protocol retaining 12% to be allocated to the Treasury; v2 remains unchanged due to hardcoded fees.

The proposal states that based on 2025 trading volume, LPs could receive approximately $62 million more in fees as a result. A higher share could attract more liquidity, thereby reducing price impact for trades. Trader fee tiers remain unchanged, and existing Infinity pools will see lower total swap fees due to reduced protocol fees.

Regarding CAKE, post-veCAKE emissions are planned to be reduced from 22,500 per day to 7,000, a cut of about 69%; the remaining 7,000 will go to the ecosystem growth fund Pantry. The Kitchen said CAKE supply has already decreased by 11.5% since Tokenomics 3.0 was approved, and v2 alone can maintain net deflation, potentially achieving the goal of a 20% supply reduction by 2030 ahead of schedule.

If the proposal passes, implementation will begin in November 2026, is expected to be completed by the end of January 2027, and will roll out chain by chain. The final plan will be submitted for a Snapshot vote after community feedback.