PancakeSwap is looking to evolve its current Cake into the new Cake 2.0. But what does this mean for the users of Cake, and how will these changes affect them, or you? I have read their new litepaper and will share what I found.
You are not losing out on anything
First, I want to make it clear that I have not found any proposed change that impacts any of the current features of the Cake token. So all you are doing with your Cake, except well may be eating it, will stay the same. They are merely looking to bring forth some new features for the Cake Token.
One of the biggest features they propose to implement is a maximum supply of Cake. So no more fever dreams with infinite Cake. The proposed supply limit is set to 750M Cake Tokens. And with the current supply of ~290M Cake, they expect the max limit will be reached in around 3 years' time. That is with the current max rate of new Cakes being minted.
New additional features coming
They also have three new main features they propose to add to the features the Cake Token already has. And in case you were curious about some of the things you can do with your Cake, if you decide to have it and not eat it I mean. These are:
a. Liquidity Mining Rewards
b. Lottery Rewards
c. Governance
d. PancakeSwap Ecosystem
e. Wider Ecosystem Partnerships (e.g. Trading Fee discounts on ApolloX)
But let us take a look at the three new features proposed. These are vCAKE, iCAKE, and bCAKE. Al three are incentives for holders of Cake to lock their Tokens. Let us take a closer look at the first vCake.
This new vCake is proposed to work as a boost to governance voting. Exactly how this is supposed to work in reality is not yet disclosed. There are a number of ways a token like this could work, for instance, it could simply work as a multiplayer that boosts your normal voting power.
iCake on the other hand is providing the holder with bosted IFO benefits. IFO is a term that means Initial Farming Opportunity. This is the successor to the ICO, the Initial Coin Offering. Both workers, or worked, as a pre-sale of a sort where the project is looking to raise funds and then in term give a reward to the people who provide the funds. And again this new iCake will act as a boost. But no info on how this will work. Personally, I think it is one of two things, if not both. The first is by holding iCake you simply get more Tokens when you farm the IFO. The second is having a set amount of iCake could allow you access to the IFO pools earlier than people without iCake.
Last is the bCake, this one is set to give its holder a boosted farms benefits. Again I can only speculate that this is a bonus to the APY, Annual Percentage Yield, you can get by farming.
How to get the new reward
First, of all, these rewards are not tokens. Meaning they have no value, other than what they provide for their holder. And you are not able to trade them.
Exactly how we are supposed to get the new tokens, in reality, is still a bit unclear in the litepaper. This is where the recap of Kitchen AMA #3 comes in, and sort of lets us know how it is done.
Here you can read that you will gain these rewards by looking your Cake Tokens into staking pools. This I would take to mean that just like normally locked staking you get some reward, presumably, it will only be more Cake. But it could feasibly be any token. And on top of this normal reward, you will also get the v-. i- and bCake.
Talking with the Developers
I have tried reaching out to a few of the developers on the Cake team, to try and see if they could share some more light on the situation. A got an initial acknowledgment from one of the Developers. But so far they have not gotten back to me in any meaningful way, all they have done was refer me to the AMA and general info about the type of staking that already is available on the platform.
What are your thoughts on the new changes that are proposed? Think they missed something obvious that they needed to do? Are you already a Cake user, if so please share your thoughts and experience, and do you plan to keep using it even after the 2.0? The comment section down below is yours.
I hope that you have found this post to be useful and hopefully to some help for you. =) If you did please consider following me, reading my other posts or why not do both. You can find them here and here.
I have also just started a new series of weekly posts, that will go live every Friday. You can catch the second step here:
My Journey to Financial Freedom - Trying new ways to earn money, sharing bandwidth
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