PancakeSwap Proposes Changes to Tokenomics, Deprecating veCAKE
PancakeSwap proposed Tokenomics v3, emphasizing “true ownership, simplified governance, and sustainable growth.” Key changes include:
- Deprecation of veCAKE, replaced by direct emissions management
- Maximum lock duration reduced to one year
- Focus on boosting capital efficiency and simplifying participation
Critics express concerns about governance integrity, with Curve founder Michael Egorov labeling it a “governance attack,” claiming it undermines the rights of existing veCAKE holders. He warned against upgradable governance systems.
Some members argue that the motivations behind the change are influenced by outside bribes, suggesting that the solution lies in capping emissions rather than eliminating veCAKE.
Supporters claim the current veCAKE model has not effectively managed CAKE sell pressure. The new model aims for a 43% reduction in emissions and reallocation of incentives to high-volume pools.
The discussion has sparked significant engagement, with approximately 150 comments from 50 users within the first day on PancakeSwap’s Governance Portal.