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<p>A new governance proposal from <a href="https://x.com/PancakeSwap" rel="noopener noreferrer nofollow">@PancakeSwap</a> would rework how the exchange rewards liquidity and how much <a href="https://x.com/search?q=%24CAKE&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$CAKE</a> enters circulation. Called 'The Flip', the plan would raise the share of swap fees paid to liquidity providers (LPs) while cutting daily token emissions.</p>
<h2 id="what-the-flip-would-change">What The Flip would change</h2>
<p>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 .</p>
<p>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 .</p>
<p>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 .</p>
<h2 id="why-it-matters-for-cake-supply">Why it matters for CAKE supply</h2>
<p>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 .</p>
<p>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 .</p>
<p>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.</p>
<h2 id="sources">Sources</h2>
<ul>
 <li><a href="https://defiprime.com/pancakeswap-flip-lp-fees-cake-emissions" rel="noopener noreferrer nofollow">DeFi Prime: PancakeSwap's Flip proposal changes LP fees and $CAKE emissions</a></li>
 <li><a href="https://forum.pancakeswap.finance/t/proposal-discussion-the-flip-liquidity-should-get-paid-more/1658" rel="noopener noreferrer nofollow">PancakeSwap Forum: The Flip, Liquidity Should Get Paid More</a></li>
 <li><a href="https://blockchainreporter.net/pancakeswap-flip-cake-emissions" rel="noopener noreferrer nofollow">Blockchain Reporter: PancakeSwap's 'Flip' proposal cuts CAKE emissions 69%</a></li>
</ul>

Is $CAKE about to get even more deflationary?!

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