Proposal to Direct CAKE Emissions to Locker Protocols

In order to help bootstrap the veCAKE ecosystem and improve CAKE incentive efficiency, The Kitchen is proposing to redirect a portion of current CAKE emissions to participate in the veCAKE locker ecosystem (i.e., provide CAKE as bribes for strategic pools).

Note: no increase in overall CAKE emissions will occur under this proposal. Strategic pools include high volume and revenue driving pools such as: BNB-USDT, USDT-USDC, BTC-USDT, BNB-ETH, ETH-USDT, among others.

Summary: Redirection of CAKE Emissions to Bribes

The Kitchen is proposing to make the following modifications to current CAKE emissions:

Reduce current emissions going to farming pools by 500 CAKE per day (from ~29,184 to ~28,684 CAKE per day).
Allocate this 500 CAKE per day to participate in locker protocol bribes
If this is successful in directing greater emissions to high volume pools to grow liquidity, then the Kitchen may request a larger amount in the future. The Kitchen will track these efforts to determine success based on pool volumes, TVL, and capital efficiency.
This will not impact the deflationary status of CAKE as no emissions have been added or removed, only redirected.

How bribes will be allocated:

The Kitchen will allocate bribes on a per epoch basis (i.e., every 14 days).
The bribes will be distributed between any locker protocol built on veCAKE, including Cakepie, StakeDAO, and Hidden Hand.
Bribe allocation will be based on bribe efficiency to get the best return on CAKE used in this effort. If the difference in bribe efficiency between locker protocols is within 10% of each other, then bribes will be split evenly among them to maximize value across the ecosystem and minimize risk.

Proposal Details

If this proposal closes with the community in favor of these recommendations, the proposed changes will be enacted and a portion of CAKE will be redirected to bribe across locker protocols.