The PancakeSwap team has responded to the community feedback on the CAKE 3.0 token economics proposal. Regarding the annual deflation target of 4%, which is based on data from the past two years, deflation is not limited to 4% per year. The actual amount of destruction will be linked to transaction volume, and if the agreement performs well, higher deflation may be achieved. For the exchange issue between mCAKE and sdCAKE, the team has confirmed that a 1:1 exchange ratio will be maintained, and users need to operate through the original entrusted platform. Regarding holding incentives, the team pointed out that they will adjust the allocation of fees and shift some liquidity provider fees to a buy and destroy mechanism, which is expected to improve the destruction efficiency to 15%. At the same time, it is emphasized that CAKE will continue to play a core role in governance, IF0, and other scenarios. In response to the doubts about the emission efficiency of veCAKE, the team believes that the current proposal can more effectively address the core issues and avoid the long-term drawbacks caused by short-term repairs. Regarding the issue of decentralized governance, the team stated that they will shift towards a direct voting model based on CAKE holdings and consider introducing delegation functionality in the future. For the issue of geographical restrictions, the team explained that IF0 remains open, while TGE has restrictions due to compliance requirements from partners. Finally, the team promises to provide real-time destruction data dashboards, maintain transparency in emission decisions, and ensure the smooth operation of the veCAKE system during the transition period. During the transition period, the veCAKE system will continue to operate until the proposal vote is completed to ensure a smooth transition.
