PancakeSwap team The Kitchen has posted a new governance proposal, titled "The Flip," that would reshape both fee distribution and token emissions across the protocol. Under the plan, liquidity providers on v3 and Infinity across all 11 supported chains would receive 88% of fees, while the protocol would keep 12% for the Treasury. v2 would stay unchanged because its fee structure is hardcoded. The proposal says LPs could receive about $62 million in additional fees based on 2025 trading volume. It also says a higher LP share could attract more liquidity and reduce price impact, while trader fee tiers would remain unchanged and total swap fees for existing Infinity pools would fall because protocol fees would be lowered. On the token side, post-veCAKE emissions would drop from 22,500 CAKE per day to 7,000, a reduction of about 69%, with the remaining 7,000 directed to the ecosystem growth fund Pantry. The Kitchen said CAKE supply is already down 11.5% from the level when Tokenomics 3.0 passed. If approved, implementation would begin in November 2026 and is expected to finish by the end of January 2027 through a chain-by-chain rollout, before a final Snapshot vote after community feedback.
PancakeSwap team The Kitchen has published a governance proposal called "The Flip," laying out changes to protocol fee distribution and CAKE emissions.
LP fee share on v3 and Infinity would rise to 88%
The proposal would increase the liquidity provider fee share on v3 and Infinity to 88% across all 11 supported chains. The protocol would retain 12%, with that portion going to the Treasury. v2 would remain unchanged because its fee setting is hardcoded.
According to the proposal, LPs could receive about $62 million in additional fees based on 2025 trading volume. The Kitchen said the higher share for LPs could attract more liquidity, which in turn could reduce price impact.
Trader fee tiers would stay the same. For existing Infinity pools, total swap fees would decline because the protocol fee would be lowered.
CAKE emissions would fall from 22,500 to 7,000 per day
On the CAKE side, post-veCAKE emissions would be reduced from 22,500 CAKE per day to 7,000 CAKE per day, a cut of about 69%. The remaining 7,000 CAKE would go to Pantry, the ecosystem growth fund.
The Kitchen said CAKE supply has already fallen 11.5% from the level recorded when Tokenomics 3.0 was approved. It also said v2 alone can maintain net deflation and that the protocol could reach its 2030 target of reducing supply by 20% ahead of schedule.
Implementation would start in November 2026 if approved
If the proposal passes, implementation would begin in November 2026 and is expected to be completed by the end of January 2027, with rollout happening gradually on a chain-by-chain basis.
The final version will be submitted to a Snapshot vote after community feedback is collected.
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