We are now one step closer to our journey of ultrasound CAKE, the vote was targeting the cake emission allocation where now the effective CAKE Pool emissions have been cut to 3 CAKE per block.
Thereafter, there will be a reduction of 0.5 CAKE/block monthly for 5 months and CAKE Syrup Pool emission is reduced to 0.35 CAKE/block (~2% APR) at month 6.
The vote:
https://pancakeswap.finance/voting/proposal/0x707643dd2c2b941c7274f26a0362922198912e8549050ae9f2d1d9d71ada04bb
With this vote passing the annual inflation rate dropped from 23% to 5%, ain’t that huge? Well it is, ultrasound cake here we come.
With the execution of the v2.5 vote we had the cake allocation to the cake pool stakers sliced a lot but with a little twist to it where now there will be protocol revenue sharing of 5%, sounds great right?
On this point the revenue generated from v3 will be shared with stakers, and longer-term stakers will receive a bigger share of the revenue. The technical details of implementation are still being worked out, but it will follow the logic of the current CAKE staking, where longer-term stakers are favored over shorter-term stakers to align the benefits of loyal stakers with the growth of PancakeSwap. And earned revenues will be able to harvest on a monthly basis.
You might be saying that the revenue share of 5% is less and won’t be able to make up for the reduction in staking APR, I hear you but rest assured that the growth in protocol revenue from AMM trading is largely expected to come from PancakeSwap successfully expanding to more chains. PancakeSwap is currently the leading DEX on BNB Chain, and is actively building on Ethereum and other chains to come.
I have seen some users that said they are not staking for 2% APR and that CAKE staking will not be attractive after this Syrup Pool reduction was executed. But First, the CAKE token is one of the most utility-rich tokens in crypto. Second, below is a sampling of staking APRs (if available) on other leading DEXs on other chains, listed in order by Coingecko volumes.
https://preview.redd.it/nv3lgcvzm9xa1.png?width=909&format=png&auto=webp&v=enabled&s=cbd2885afc9e1a47cc2bb986d9ddb7399a997baf
You might be wondering about the future plan of Syrup Pool after this, and if there are other future utility features for locked CAKE right? Well the team is trying to incorporate CAKE staking in other new products this quarter. And given Q2 development requirements (some of which they didn't announce in the roadmap), they will revisit the existing products and how they can further refine/add product utilities onto CAKE in Q3 and beyond.
🐰Stake’Em!🥞
I love the products and I love the team, always making the correct decisions and learning along the way 😇
I wasn’t expecting it would affect current apy of current contracts. I thought it would be executed by another swap version, from 2.0 to 2.5 and my current pool would not be affected and remain in the 2.0 version. I am not very pleased to find out this wasn’t the case.
I renewed my cake for another year, based on those assumptions. Now they’re stuck. My fault I guess, but I have my doubts about the timing and the way it was presented, especially keeping in mind how the previous 1.0 to 2.0 swap was done. I am somewhat disappointed.
So anyway, what is that 5% about? Will it be added to the pool as part of the apy? Or will it be delivered directly to long term staking wallets?
But what about the emissions on the farms? Why they don’t make a plan or a vote to reduce this also over a period of 6 months? Now the long term stakers are victims… we are agree that PCS needs to become deflationary (Ultrasound CAKE) but do it on both sides not only in the syrup pool but als in the farms, so we will finally have no sell pressure anymore
Biggest ponzi out there. Pure BS this Cake.
Sounds good we shall see