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PancakeSwap’s Plan to Retire veCAKE Faces Pushback from Largest Holder
A heated debate has emerged within the PancakeSwap ecosystem as the largest holder of CAKE tokens, Cakepie, strongly opposes the proposed Tokenomics 3.0 plan to retire the veCAKE model. The controversy surrounds a restructuring aimed at reducing CAKE’s daily emissions and achieving annual deflation of 4%.
The proposed changes would involve removing staking from the platform, which Cakepie argues will negatively impact the ecosystem by restricting user participation. They claim that the current system encourages decentralized decision-making, aligns incentives within the protocol, and rewards users who are committed to the long-term growth of PancakeSwap.
PancakeSwap’s proposal seeks to address concerns regarding the overly complex governance structure and inefficient resource distribution through incentivized voting under veCAKE. However, Cakepie asserts that these changes would benefit larger token holders while excluding those who have invested in the protocol for its long-term potential.
Furthermore, Cakepie has raised suspicions about possible manipulation within the governance process. They claim that multiple wallets held approximately 25 million CAKE shortly before the announcement of the proposed change, potentially influencing the vote without respecting fair participation principles.
In response to the controversy, PancakeSwap presented an alternative, which includes directly incentivizing value-generating pools and sharing fees with active voters. This approach would allow early exits with penalties, rather than eliminating staking entirely.
The outcome of this vote will have significant implications for the future of PancakeSwap, as it determines whether the platform will continue to support its existing economic strategy or adopt a new framework that may change the dynamics within the ecosystem.
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Source: https://crypto-economy.com/pancakeswaps-plan-to-retire-vecake-faces-pushback-from-largest-holder/
