PancakeSwap, a multi-chain decentralized exchange (DEX), recently proposed the launch of vote-escrowed CAKE (veCAKE) and voting gauges in the next few days, with more than 90% of the votes in favor of the protocol’s launch. This initiative is designed to strengthen CAKE token holders with enhanced governance influence, recharge rewards for all stakeholders, and boost liquidity on the platform’s pools.
In the last 30 days, CAKE has been projecting an uptrend of almost 100%. CAKE tokens can be locked up by users for a maximum of four years to get veCAKE. The model has been pioneered by veCRV’s Curve since 2020 and has been adopted by many DeFI protocols.
CAKE token holders will be able to vote on Ethereum, Arbitrum, and BNB Chain farms at the time of launch, which will be supported by other chains that will be gradually rolled out.
To ensure the protocol’s health, the PancakeSwap team has assigned 40% of its emissions to core liquidity provider pairs, including stablecoins (ETH, BNB, BTC, and CAKE).
PancakeSwap plans to decrease this 40% allocation as more participants are expected to engage in governance. veCAKE token holders will also have the opportunity to make money through third-party “bribes” in exchange for incentives provided to certain liquidity pools.
A week ago, PancakeSwap launched a new marketplace for gamers, launching two exciting gaming titles.
The voting gauge rollout will take place in various phases that will initially cover the liquidity pool with 0.99 CAKE tokens per block in rewards. In the later stages, PancakeSwap expects to observe an expansion of the protocol to other blockchains.