PancakeSwap’s core team wants liquidity providers on its newer pools to keep far more of the trading fees they generate, and to rely less on freshly minted CAKE to attract them.
In a forum post published on Oct. 14, the team, which posts as The Kitchen, laid out a plan it calls “The Flip.” Under the plan, liquidity providers on v3 and Infinity pools would take home 88% of swap fees on each of the 11 chains PancakeSwap supports, among them BNB Chain, Ethereum, Base and Solana. LPs on most pools currently keep between 66% and 68%. The remaining 12% would go to the PancakeSwap Treasury.
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Fewer Tokens Minted
The proposal pairs the fee change with a cut in daily CAKE emissions from 22,500 to 7,000, which the team described as an effective reduction of about 69%. That means 15,500 fewer CAKE created each day, or roughly 5.7 million a year. The 7,000 CAKE still issued daily would fund a new ecosystem pool called the Pantry, which the team said it would spend on marketing, partnerships and seeding liquidity in new pools.
“Growth is paid for by activity on the platform, not by minting more CAKE,” the post said.
By the team’s math, LPs on v3 and Infinity would have collected about $62 million more in fees on 2025 trading volume under the new split. Fee tiers for traders would stay the same. The v2 pools, whose fees are hard-coded, would not change and would keep sending 23% of their swap fees to the CAKE burn.
For existing Infinity pools, where LP fees were locked in at creation, the smaller protocol cut would lower the total fee instead. A 1% pool, for example, would drop to about 0.76%.
The team argued that “v2 alone keeps CAKE net deflationary,” pointing to an average net supply drop of about 190,000 CAKE per week over the past 10 weeks. It said that pace keeps CAKE on track for the roughly 20% supply reduction by 2030 set under Tokenomics 3.0, which passed in April 2025, with supply already down 11.5% since then.
Holders Push Back
Most early replies on the thread were critical, and several commenters said burns would shrink. “v3 and Infinity stop burning CAKE. Why don’t you state this clearly?” wrote a user posting as Juapia, who suggested routing part of the 12% to burns.
Another user, matrdolfo, who said they have held CAKE since 2021, wrote that they were “fundamentally opposed to the final outcome.” A third, PancakesLover, wrote, “I would personally vote against this change.”
CAKE traded at $2.20 on Oct. 15, down about 6.8% over 24 hours, according to CoinGecko data.
In December 2023, PancakeSwap’s community voted to cut CAKE’s maximum supply from 750 million to 450 million. Holders approved a second cut in January 2026, lowering the cap to 400 million in a Snapshot vote that closed Jan. 19.
If The Flip passes, rollout would start in November and wrap up by the end of January 2027, according to the proposal. The plan has not yet gone to a Snapshot vote, and the team said it “will review all feedback before publishing the final proposal for voting.” No vote date has been set.
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