Decentralised exchange PancakeSwap proposed raising the fee share for liquidity providers to 88 percent and cutting daily CAKE token issuance by 69 percent.

Under the proposal, PancakeSwap would raise the V3 and Infinity LP fee share to 88 percent across all 11 chains it supports. It would lower the protocol fee share to 12 percent and send the fees to the treasury. V2 would keep its current structure.

PancakeSwap expects the move to result in LPs receiving about $62 million more in fees, based on estimated 2025 trading volume. User trading fee rates would not change.

PancakeSwap would also reduce CAKE token issuance. It would cut daily issuance to 7,000 tokens from 22,500, down about 69 percent. All 7,000 tokens would be allocated to Pantry, an ecosystem growth fund. As a result, annual issuance would fall by about 5.7 million tokens.

Total CAKE supply has fallen 11.5 percent since Tokenomics 3.0 passed in April 2025. PancakeSwap believes this proposal would allow it to maintain its goal of reducing supply by about 20 percent by 2030.

Implementation would begin in November 2026, two weeks after the proposal is approved. It is expected to conclude at the end of January 2027 over about three months. PancakeSwap is currently discussing the proposal in the community and plans to put it to a Snapshot vote.