Proposal for Adjustments to Syrup Pools Rewards (with a multichain twist!)

September 2022 CAKE Emission Redirection (with a multichain twist!)

Wen multichain? Soon.

As you know, when launching on new chains, it is important to go out with a bang. To do so, we require the help of our community, and also juicy APRs.

We are proposing to redirect CAKE from Syrup Pool rewards to Multichain Farm Emissions. This change will only be implemented when we go multichain, and we are preemptively securing the support of our community so that we can execute quickly once we go multichain.

If this proposal passes, once we deploy on another chain, we will first proceed to incentivize the multichain farms with the redirected CAKE. Shortly thereafter, we will post a “Confirmation Proposal” to confirm that the community is satisfied with our deployment and approves of our continual incentivization on the deployed chain.

Due to reasons of competitive advantage and confidentiality, we are unable to announce exactly which chains we are deploying to and specific details. However, we will share our multichain strategy in more detail below and in an AMA.

Timeline

1️⃣This Proposal is submitted (19 Sep 2022)

2️⃣ AMA to follow (20 Sep 2022)

3️⃣PancakeSwap deploys on New Chain (soon)

4️⃣PancakeSwap publishes a Confirmation Proposal (a few days after 3️⃣)

5️⃣ If the Confirmation Proposal passes, the PancakeSwap team will execute the rest of the multichain plan on the deployed chain.

(Note: Steps 3-5 may be repeated for subsequent chain deployments.)

Read before voting

Before you vote, please make sure you understand the impact of long and short term effects of CAKE emissions changes on our tokenomics. And also the potential benefits of going multichain.

• Read and digest the CAKE Tokenomics documentation
• Read and digest the CAKE Tokenomics Twitter Thread
• Read this proposal in full;
• Make up your mind, and cast your vote!

Points of Discussion / Questions

1. Why do we need CAKE redirection from Syrup Pool to Multichain Farm Emissions?

First, we intend to move quickly and intensely with our Multichain product, which will be supported by having a warchest of CAKE from a specialized Multichain Farm Emissions allocation.

Second, we are and will always strive to be BNB Chain’s Premier DEX. This mission is partly supported by our incentivized Farms, and we believe that redirecting allocations from Pools will present a lower cost to our platform’s success on BNB Chain.

Moreover, as elaborated in a previous proposal, reducing or redirecting emissions from Farm Emissions has diminishing returns; we are therefore redirecting emissions from Pools.

2. How would the Multichain Farm Emissions work?

Fantastic question. We will identify trading pairs with the highest TVL and user growth potential, and incentivise those pairs with CAKE. Depending on the chain, to claim their farm rewards, our multichain users may have to come back to BNB Chain, where the CAKE action is.

3. Why are the options “up to xx CAKE”?

Depending on market conditions at point of deployment, we may not require the full amount of CAKE. We will only allocate CAKE to liquidity pairs that will bring the most TVL, and therefore value accrued to CAKE holders.

For instance, if 1 CAKE per block is the consensus decision for this proposal, and we only require 0.5 CAKE per block in our multichain rollout, we will only reduce Pools Emission by 0.5 CAKE per block.

4. What is the purpose of the confirmation proposal? Due to reasons of competitiveness and confidentiality, we are unable to announce which chains we will be deploying the Multichain Farm Emissions – the Confirmation Proposal allows us to confirm that the community is satisfied with the chain we deploy to, and the manner of our rollout.

Example of Adjustment

Based on data extracted on 19 Sep 2022, a rough gauge of the impact of the pools emissions reduction is as follows:

Adjustment Options

CAKE holders can vote for any one of these options at the bottom of this page.

❌ No change:

• 9 CAKE per block goes to Syrup Pools
• 0 CAKE per block goes to Multichain Farm Emissions
• Total emissions: ~11.16 CAKE per block (no change)

🔀 0.50 CAKE per block redirection (5.56%) of Syrup Pools rewards:

• A minimum of 8.5 CAKE per block goes to Syrup Pools
• Up to 0.5 CAKE per block goes to Multichain Farm Emissions
• Total emissions: ~11.16 CAKE per block (no change)

🔀🔀 1.00 CAKE per block redirection (11.11%) of Syrup Pools rewards:

• A minimum of 8 CAKE per block geso to Syrup Pools
• Up to 1 CAKE per block goes to Multichain Farm Emissions
• Total emissions: ~11.16 CAKE per block (no change)

🔀🔀🔀 1.25 CAKE per block redirection (13.89%) of Syrup Pools rewards:

• A minimum of 7.75 CAKE per block goes to Syrup Pools
• Up to 1.25 CAKE per block goes to Multichain Farm Emissions
• Total emissions: ~11.16 CAKE per block (no change)

⚠️Please note⚠️

One option must have a majority of 50%+ at the end snapshot in order to win the vote and be executed. If none of the options get over 50% of the vote, we'll create a new proposal.