PancakeSwap Proposes To Launch veCAKE To Increase Governance Influence And Liquidity
- Proposal garners 98% support for introducing vote-escrowed CAKE and voting gauges.
- Designed to empower CAKE holders, enhance liquidity, and elevate staking rewards.
- Phased launch on BNB Chain, Ethereum, and Arbitrum, with 0.99 CAKE/block rewards.
PancakeSwap is gearing up for a transformative move with the proposed introduction of vote-escrowed CAKE (veCAKE) and voting gauges.
A resounding 98% of votes currently support this initiative, which is poised to empower CAKE holders, increase governance influence, enhance liquidity across pools, and elevate rewards for CAKE stakers.
Scheduled for implementation over the next few days, the veCAKE and voting gauges align with PancakeSwap’s Q4 roadmap. These gauges will empower veCAKE holders to influence the distribution of CAKE farm emissions, enabling them to shape reward allocations in various liquidity pools on the decentralized exchange.
PancakeSwap’s veCAKE Proposal Gains Overwhelming Backing!
The veCAKE model, inspired by Curve Finance, encourages long-term engagement and governance involvement. Users lock their tokens for a set period, receiving “ve” tokens that grant substantial voting rights and higher protocol rewards, promoting sustained participation and decision-making.
The phased launch of voting gauges will initially cover BNB Chain, Ethereum, and Arbitrum liquidity pools, with around 0.99 CAKE per block in rewards. The Kitchen team, managing PancakeSwap, proposes retaining a 40% voting share in the initial rollout to ensure a smooth transition for liquidity providers.
The Kitchen’s strategy prioritizes competitive returns for major liquidity pools, aligning with existing votes and gradually shifting to a new veCAKE gauge voting system. If approved, the proposal will enact shortly after the vote concludes, marking another milestone in PancakeSwap’s commitment to innovation and user empowerment.
PancakeSwap, currently offering DEX trading on various chains, has been consistently expanding its ecosystem, with this proposal following previous initiatives to share trading-fee revenue with CAKE token stakers and the recent launch of its gaming marketplace.
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