PancakeSwap LP Fee Share Proposal: 88% To LPs, CAKE Emissions Cut 69%

PancakeSwap's Kitchen wants liquidity providers to keep almost nine of every ten dollars in swap fees. A proposal posted to the PancakeSwap forum on October 14, 2026 would lift the PancakeSwap LP fee share to 88% on v3 and Infinity pools. It would also cut daily CAKE emissions by about 69%. The post is a discussion draft, so no vote has been scheduled.

LP fee share pool by pool

Today liquidity providers keep roughly 66% to 68% of swap fees on most pools. The proposal moves every v3 fee tier and every Infinity pool to an 88/12 split across all 11 supported chains. Those are BNB Chain, Ethereum, Arbitrum, Base, Solana, Robinhood, Monad, Arc, zkSync, Linea and opBNB. The remaining 12% would go to the treasury.

Solana is the smallest change. Its v3 pools already pay LPs 84%, so the step to 88% is four points. The v2 pools stay as they are because their fees are hard-coded. They remain the main CAKE burn engine, with 23% of swap fees sent to burn.

The fee table from the forum post, showing LP and protocol shares today and as proposed. Source: PancakeSwap forum.

One catch applies to older Infinity pools. Their LP fee was fixed when each pool was created, so a lower protocol fee shrinks the total swap fee instead. The post gives a 1% pool as an example, which would become about 0.76%, with 0.67% going to LPs.

Where the cut CAKE goes

On the token side, the proposal cuts emissions after veCAKE from 22,500 to 7,000 CAKE per day. That means 15,500 fewer CAKE minted each day, or about 5.7 million a year. The remaining 7,000 CAKE would fund a new ecosystem pot called the Pantry. The Kitchen would spend it on marketing, partnership deals and starting liquidity in new pools.

The summary at the top of the proposal as it appears on the forum. Source: PancakeSwap forum.

The author argues the old emissions level is no longer needed once LPs keep 88%. It also points to the supply record. Tokenomics 3.0 passed in April 2025 with a goal of cutting supply about 20% by 2030, and the post says supply is already down 11.5%. Using a 10-week average of net burn, it estimates the remaining gap closes around the end of 2029.

What the proposers expect, and the timeline

Based on 2025 volume, the post says LPs on v3 and Infinity would have earned about $62 million more in fees. For each $1,000 in fees a pool generates, LPs would keep $880. Fee tiers for traders would not change. Traders would pay the same fee on the same pool, and the proposers say the difference would show up in depth rather than price.

The Kitchen also projects that the higher payout could support up to about 30% more liquidity in the same pools. It says that could cut price impact by roughly 20% to 25%. Those are the proposers' own estimates, not measured results.

If the proposal passes, the post says implementation would begin in November 2026, within two weeks of the vote. The rollout is expected to take about three months and finish by the end of January 2027, with each chain announced as it goes live. Before any of that, the draft still has to go through community feedback and then a Snapshot vote. A higher PancakeSwap LP fee share only takes effect if that vote passes.