The PancakeSwap ecosystem is currently facing a period of heightened tensions following the unveiling of Tokenomics Proposal 3.0. Cakepie DAO, the largest veCAKE holder and a key contributor to PancakeSwap’s growth, has expressed strong opposition to the proposed changes.
In a recent post on X, Cakepie DAO voiced deep frustration over the decision to retire veCAKE, a governance mechanism that was designed to reward long-term commitment and align incentives across the ecosystem. The DAO, which has locked in 13 million CAKE tokens, was blindsided by the proposal and criticized the lack of communication surrounding the changes.
The Tokenomics 3.0 proposal aims to achieve a 4% annual deflation rate and reduce daily CAKE emissions from 40,000 to 22,500. PancakeSwap developers argue that retiring veCAKE is necessary to simplify governance, reduce costs, and build a protocol that delivers real yield through increased trading volume and reduced token inflation.
However, critics of the proposal argue that removing veCAKE could shift influence away from long-term believers towards whales and short-term holders. The decision has sparked concerns about decentralization within the ecosystem.
Adding to the controversy, Cakepie raised concerns about potential governance manipulation surrounding the proposal. The DAO claimed that roughly 25 million CAKE tokens were locked in multiple wallets just before the announcement, potentially undermining the fairness of the voting process.
In response to the proposed changes, Cakepie has suggested alternative solutions that would address efficiency concerns while preserving the integrity of long-term tokenomics and governance. These options include rewarding pools that generate real value, allowing veCAKE holders who vote to receive a portion of trading fees, and offering users the ability to exit veCAKE lockups early in exchange for a penalty.
As the community awaits the outcome of the upcoming vote on Tokenomics Proposal 3.0, the future direction of PancakeSwap remains uncertain. The situation highlights the importance of transparent communication, fair governance processes, and the need to balance efficiency with decentralization in decentralized finance ecosystems.