PancakeSwap’s fee changes could give liquidity providers 88% of swap fees

PancakeSwap’s proposed fee changes would give v3 and Infinity liquidity providers 88% of swap fees, alongside an emissions plan that brings the cumulative reduction in CAKE issuance to roughly 69%. The fee overhaul remains at the discussion stage and is not an approved change, while the exchange has also introduced BTC and ETH Dual Investment options.

Key takeaways

• The proposed 88% LP share applies to v3 and Infinity pools, not v2.
• The roughly 69% emissions cut includes earlier reductions.
• ETH Dual Investment offers selectable terms of up to seven days.
• A mid-October weekly recap recorded approximately 529,000 CAKE burned.

PancakeSwap’s fee changes remain a proposal

The proposal would direct most v3 and Infinity trading fees to liquidity providers and send the remaining share to the protocol treasury. No governance vote has approved it.

Both pool designs use concentrated liquidity, allowing providers to place capital within selected price ranges. The older v2 fee structure would remain unchanged, including its mechanism for buying back and burning CAKE. Infinity already allocates up to 90% of fees to LPs on some chains, including Robinhood Chain.

The approximately 69% cumulative emissions reduction includes cuts made under Tokenomics 3.0, introduced in April 2025. That overhaul reduced daily issuance by roughly 44%, from about 40,000 CAKE to around 22,500; the latest proposal would deepen the overall reduction.

PancakeSwap’s fee changes aim to strengthen user incentives and liquidity while supporting platform sustainability. The higher fee allocation would partly offset lower token rewards for liquidity providers.

BTC and ETH Dual Investment expands the product offering

Dual Investment for BTC and ETH is available on Binance Smart Chain. Users can choose investment prices and settlement dates.

For ETH, selectable timeframes extend to seven days. The product launch accompanies the proposed fee and emissions adjustments but is already available, unlike the discussion-stage fee model.

CAKE burns continue amid mixed market signals

A weekly recap from mid-October 2026 recorded approximately 529,000 CAKE burned. The protocol also reports 37 consecutive months of net burns since September 2023, meaning monthly token destruction exceeded issuance throughout that period.

As of October 2026, PancakeSwap reports a net supply reduction of roughly 15–16%. Between September 2023 and now, the number of CAKE tokens in circulation dropped from roughly 392 million to about 330 million.

Tokenomics 3.0 set a target of approximately 4% annual deflation through revenue-funded buybacks, within the broader framework called “The Kitchen.”

The market snapshot accompanying the product update described mixed crypto-market signals and no reported PancakeSwap trading volume over the preceding 24 hours.

A shift toward trading-fee incentives

PancakeSwap is a decentralized exchange built on Binance Smart Chain, focused on automated market making and liquidity provision. Its tokenomics changes seek to move liquidity incentives away from token subsidies and toward trading-fee income.

The proposed model combines higher LP fee retention with lower issuance, while preserving v2’s existing burn mechanism. Infinity pools have recorded more than $150 billion in cumulative trading volume.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.