Is $CAKE about to get even more deflationary?!
PancakeSwap's 'The Flip' proposal would give liquidity providers 88% of v3 and Infinity swap fees and cut daily CAKE emissions from 22,500 to 7,000.
A new governance proposal from @PancakeSwap would rework how the exchange rewards liquidity and how much $CAKE enters circulation. Called 'The Flip', the plan would raise the share of swap fees paid to liquidity providers (LPs) while cutting daily token emissions.
What The Flip would change
Under the proposal, liquidity providers on v3 and Infinity would receive 88% of swap fees , with the remaining 12% sent to the treasury . LPs currently earn roughly 66% to 68% on most pools. The change would apply to every v3 fee tier and Infinity pool across the 11 chains PancakeSwap supports .
On the token side, the plan would reduce effective emissions from 22,500 to 7,000 $CAKE per day , a cut of about 69%. According to the proposal, the remaining emissions would be directed to the Pantry ecosystem growth fund .
The Kitchen, PancakeSwap's core team, estimates that v3 and Infinity LPs would have earned about $62 million more in fees using 2025 trading volume . DeFi Prime reports that the change would apply automatically to every v3 and Infinity position, with no need for LPs to claim, stake or lock anything new .
Why it matters for CAKE supply
The proposal builds on earlier tokenomics changes. PancakeSwap's forum post says CAKE supply is down 11.5% since Tokenomics 3.0 . The older v2 pools are not affected: their fees are hard-coded and still send 23% of swap fees to CAKE burns, and they would stay unchanged .
Not everyone is convinced the plan makes $CAKE more scarce for holders. Blockchain Reporter notes that the 7,000 daily CAKE the proposal keeps minting flows to a discretionary fund rather than to holders or a burn . It also cautions that the $62 million figure assumes 2025 trading volume repeats .
The plan is not final. It remains a discussion draft, and the Kitchen plans to review forum feedback before publishing a final proposal for a Snapshot vote . If approved, implementation would begin in November 2026 and finish by the end of January 2027.
