PancakeSwap has proposed a major change called “The Flip” that would change how its decentralized exchange shares trading fees and rewards users across 11 blockchain networks.
Under the proposal, users who provide crypto for trading would receive a larger share of the fees from its v3 and Infinity trading pools. Their share would rise from 66% to 68% in some cases, and up to 88% in others. The rest of the fees would go to PancakeSwap’s treasury. Its older v2 pools would keep their current system, which uses fees to buy back and destroy CAKE tokens, reducing the total supply.
New proposal: The Flip 🥞
LPs on PancakeSwap v3 and Infinity would keep 88% of swap fees, and CAKE emissions would be cut by ~69%
Read the full proposal and share your feedback with us 👉 https://t.co/bVXQ5Xf4vo
What would change:
🔹 LPs on v3 and Infinity keep 88% of swap fees, up from 66–68% on most pools, across all 11 chains
🔹 CAKE emissions drop from 22,500 to 7,000 per day, with those 7,000 going to the Pantry, our new ecosystem growth fund
🔹 v2 stays the same and keeps burning CAKE, so CAKE stays deflationary— PancakeSwap (@PancakeSwap) October 14, 2026
The proposal would also cut the number of new CAKE tokens created each day by 69%, from 22,500 to 7,000. All the remaining tokens would go into a new fund called the Pantry to pay for platform development and marketing.
The proposal is still under discussion. If approved, PancakeSwap would rely less on newly created tokens to reward users and more on income from trading fees.
READ ALSO: PancakeSwap Launches “Springboard” Platform for Easy Token Creation on BNB Chain
Trading fees give liquidity providers a more reliable way to earn
Liquidity providers earn a share of the fees whenever traders swap tokens in their pools. The more trading activity a pool attracts, the more fees it can generate for its providers. This gives them a way to earn from use of the platform.
Social media user @orinBase highlighted this, arguing that combining real trading fee rewards with lower token creation could give PancakeSwap a stronger foundation. The approach could help the exchange attract liquidity providers without depending as heavily on issuing new CAKE tokens to reward them.
@PancakeSwap less emissions, more rewards for LPs
now that’s tokenomics with a purpose— Orin (@OrinBase) October 14, 2026
Market commentator @a_galunov also pointed to the potential benefit for pools with lower trading volumes. These pools often generate fewer fees, which can make them less attractive to liquidity providers. Giving providers a larger share of the fees could improve their earnings and encourage them to supply tokens to pools that might otherwise struggle to attract liquidity.
This is actually great, since it’s way more profitable for lps to provide liquidity on Uniswap, especially in low-liquidity pairs (from my experience, lmk if I’m off).
Add the emissions cut on top of that, and $CAKE is worth another look, even though the token seems pretty expensive at its current mcap.
— Artem (@a_galunov) October 14, 2026
What fewer token minting means for CAKE holders
This policy changes how the platform’s native token is valued for average crypto investors who do not supply liquidity to trading pools. By shutting off 69 per cent of the daily token tap, the exchange is attempting to transform its native asset into a more scarce, revenue-backed holding.
This transition has led community members to push for even stricter permanent limits on total token supply. Crypto analyst @Alexsoh14 argued that developers should officially cap the asset’s total supply at 350 million tokens to give the market a clearer, more predictable valuation.
@PancakeSwap Since the emission is cut, the max supply should be cut too and capped at 350M. Though we know it will never reach 350M but it gives better FDV value.
— Alex Soh (@AlexSoh14) October 14, 2026
Meanwhile, the PancakeSwap team announced an integration with Zyfi, a service that allows users to conduct gas-free transactions and swaps with any token of their choice. This integration is expected to facilitate a seamless experience for the platform’s users on the zkSync Era network, simplify cryptocurrency transactions, and reduce costs.
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