PancakeSwap’s core team wants liquidity providers on its newer pools to keep a much larger share of the trading fees they generate, while cutting back on the use of newly minted CAKE to attract capital.
In a forum post published on Oct. 14, the team, posting as The Kitchen, introduced a proposal called The Flip. If adopted, liquidity providers on v3 and Infinity pools would receive 88% of swap fees across all 11 chains supported by PancakeSwap, including BNB Chain, Ethereum, Base, and Solana. Most pools currently send about 66% to 68% of fees to LPs. The remaining 12% under the proposal would go to the PancakeSwap Treasury.
Daily CAKE emissions would drop from 22,500 to 7,000
The proposal also calls for a steep reduction in CAKE issuance. Daily emissions would fall from 22,500 CAKE to 7,000, which the team said amounts to an effective cut of about 69%.
That would mean 15,500 fewer CAKE minted each day, or roughly 5.7 million fewer tokens a year. The 7,000 CAKE still issued each day would be directed to a new ecosystem pool called the Pantry. According to the team, that pool would fund marketing, partnerships, and early liquidity support for new pools. The forum post said platform growth should be paid for by activity on PancakeSwap rather than by minting more CAKE.
Using 2025 trading volume as a reference, the team said LPs on v3 and Infinity would have collected about $62 million more in fees under the new split. Trader fee tiers would remain unchanged.
v2 pools would stay as they are
PancakeSwap said v2 pools would not be affected because their fee logic is hard-coded. Those pools would continue to send 23% of swap fees to CAKE burns.
The treatment of existing Infinity pools would be different. Because LP fee settings on those pools were locked in when the pools were created, a lower protocol cut would reduce the total trading fee instead of changing the LP share. The team gave one example: a pool with a 1% fee would fall to about 0.76%.
Team says CAKE would remain net deflationary
To address supply concerns, the team argued that v2 on its own is enough to keep CAKE net deflationary. It pointed to an average net supply decline of about 190,000 CAKE per week over the past 10 weeks.
At that pace, the team said CAKE would still be on track to meet the roughly 20% supply reduction by 2030 that was set under Tokenomics 3.0. That framework passed in April 2025, and the post said supply has already fallen 11.5% since then.
Early community replies were mostly negative
Initial responses in the forum thread were largely critical. Several commenters argued that the proposal would reduce the burn component of the token model.
One user, Juapia, wrote, 「v3 and Infinity stop burning CAKE. Why don’t you state this clearly?」 and suggested that part of the 12% treasury share should be routed to burns.
Another commenter, matrdolfo, who said they have held CAKE since 2021, wrote that they were fundamentally opposed to the final outcome. A third user, PancakesLover, wrote, 「I would personally vote against this change.」
Price reaction and next steps
According to CoinGecko data, CAKE traded at $2.20 on Oct. 15, down about 6.8% over 24 hours.
The proposal comes after earlier supply-cap reductions approved by the community. In December 2023, PancakeSwap token holders voted to cut CAKE’s maximum supply from 750 million to 450 million. In January 2026, holders approved a second reduction, lowering the cap to 400 million in a Snapshot vote that closed on Jan. 19.
If The Flip passes, the rollout would begin in November and finish by the end of January 2027, according to the proposal. The plan has not yet been submitted to a Snapshot vote. The team said it will review community feedback before publishing the final version for voting, and no vote date has been set.