PancakeSwap: 4% annual deflation rate target is not a hard cap, and the destruction volume is linked to the transaction volume and adjusted dynamically

According to PANews on April 10, the PancakeSwap team responded to community feedback on the CAKE 3.0 token economics proposal . Regarding the 4% annual deflation target, 4% is a target set based on the data of the past two years. Deflation is not limited to 4% per year. The actual destruction volume will be linked to the transaction volume. If the protocol performs well, higher deflation may be achieved. Regarding the exchange of mCAKE and sdCAKE, the team confirmed that the exchange ratio will be maintained at 1:1, and users need to operate through the original entrustment platform.

Regarding holding incentives, the team pointed out that it will adjust the fee distribution and transfer part of the liquidity provider fees to the buy-to-burn mechanism, which is expected to increase the destruction efficiency to 15%. At the same time, it emphasized that CAKE will still play a core role in governance, IF0 and other scenarios. In response to the doubts about the emission efficiency of veCAKE, the team believes that the current proposal can more effectively solve the core problem and avoid the long-term disadvantages caused by short-term fixes.

Regarding the issue of decentralized governance, the team said that it will switch to a direct voting model based on CAKE holdings and consider introducing a delegation function in the future. Regarding the issue of geographical restrictions, the team explained that IF0 remains open, while TGE is restricted due to partner compliance requirements. Finally, the team promised to provide a real-time destruction data dashboard, maintain transparency in emission decisions, and ensure that the veCAKE system runs smoothly during the transition period. During the transition period, the veCAKE system will continue to operate until the proposal vote is completed to ensure a smooth transition.

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Author: PA一线

This content is for informational purposes only and does not constitute investment advice.

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