PancakeSwap Proposal Would Increase LP Share of Swap Fees, Cut CAKE Emissions

PancakeSwap’s core team proposed redirecting more swap-fee revenue to liquidity providers on newer pools and cutting daily emissions of the PancakeSwap token (CAKE), a change that would reshape incentives and reduce new token issuance.

Under The Flip, liquidity providers on v3 and Infinity pools across 11 chains would receive 88% of swap fees, while the PancakeSwap Treasury would get the remaining 12%. The networks include BNB Chain, Ethereum, Base and Solana. Providers on most pools currently receive 66% to 68% of fees.

Daily post-veCAKE emissions would drop from 22,500 CAKE to 7,000 CAKE, a reduction of 15,500 CAKE, or about 69%. The remaining 7,000 CAKE per day would go to the Pantry, a proposed ecosystem fund for marketing, partnerships and seeding liquidity in new pools.

At 2025 trading volume, the new split would have meant about $62 million more in fees for v3 and Infinity liquidity providers compared with the current arrangement. Trader fee tiers would stay the same.

Existing Infinity pools have LP fee levels set when each pool is created. For those pools, the lower protocol share would reduce the total swap fee instead of changing how a fixed fee is divided. A pool with a 1% fee would fall to about 0.76%, including roughly 0.67% for liquidity providers.

The proposal leaves v2 pools unchanged. Their fees would continue sending 23% of swap fees to CAKE burns. Early forum feedback raised concerns about the effect on burns. Juapia wrote, “v3 and Infinity stop burning CAKE,” and suggested sending part of the Treasury’s share to burns.

The plan follows community votes that lowered CAKE’s maximum supply from 750 million to 450 million in December 2023, then to 400 million in a Snapshot vote that closed Jan. 19, 2026.

The proposal remains under forum discussion and has not gone to a Snapshot vote. If approved, implementation would begin in November 2026 and is expected to finish by the end of January 2027.