Introducing vCAKE — Weighted Voting Power based on Fixed-Term CAKE Staking
Yo CAKE Fam, we are excited to announce vCAKE — weighted voting power based on the amount of locked CAKE you have.
The introduction of vCAKE, alongside our already-implemented iCAKE, forms part of our strategy to continue to bring more benefits to our fixed-term CAKE holders and loyal CAKE family!
What is vCAKE?
vCAKE is a number representing the boosted voting power based on a user’s fixed-term CAKE staking position.
The vCAKE number will be added to your total voting power.
Similar to iCAKE, vCAKE is NOT a new token.
vCAKE IS NOT transferrable or tradeable.
Why are we proposing vCAKE?
CAKE has been and will continue to be the essential element of PancakeSwap. Everything in PancakeSwap – from trading fee burns, to lottery and prediction, and our syrup pools – is built around CAKE.
Importantly, from inception, CAKE has been playing another essential role that defines PancakeSwap –governance and voting. Every CAKE holder who has their CAKE in their wallet or staking in PancakeSwap CAKE/BNB farm, CAKE pool, and other syrup pools will be able to participate in the governance voting or create their very own community proposal for others to vote on.
Previously, the voting power has been 1:1 to the CAKE amount a user is holding. In April 2022, we introduced token locking with the brand new fixed-term CAKE staking pool. Like every other protocol with token locking, we feel it is not only logical but also essential to bring weighted voting power to those who are willing to lock their tokens for a longer period of time to better reflect and reward their loyalty to the project.
How is vCAKE calculated?
vCAKE is calculated based on two variables:
- The amount of CAKE located in the Fixed-Term Staking Pool
- The remaining lock durations of the staking positions
For point 2., it is important to clarify that the remaining lock duration is not (a) how many weeks you committed your CAKE for when you first locked it up (e.g. 52 weeks), but (b) the time remaining on your lock. In this case, if you locked CAKE for 52 weeks around 10 weeks ago, your remaining lock duration is 42 weeks, not 52 weeks.
If your remaining staking duration is less than one week, your vCAKE is equal to the amount of CAKE locked in the CAKE pool.
If your remaining staking duration is more than one week, your vCAKE is equal to the amount of CAKE locked, multiplied by the number of weeks left in the staking position.
For example:
- Alice locked 100 CAKE for 52 weeks; her staking position will unlock in 40 weeks. She has `100 x 40 = 4000 vCAKE`
- Bob locked 100 CAKE for 52 weeks; his staking position will unlock in 52 weeks. He has `100 x 52 = 5200 vCAKE`
- Carole locked 100 CAKE for ten weeks; and her staking position has ended. She has `100 vCAKE`
Wen? Vote to make it happen!
To introduce this new system to our existing governance voting. We will put up a 72 hours vote for our community to vote on, with an AMA on the day of voting. Mark the dates:
💬 AMA: Jul 29, 13:00 UTC on Twitter Space
🗳️ Vote: Jul 29, 13:30 UTC ~ Aug 1, 13:30 UTC
We will answer your questions, so be sure to post them on Twitter with the hashtag #PancakeAMA, reply to the announcement tweet, and comment down below or under the Telegram announcement.
We believe vCAKE will bring tremendous benefits not only to the fixed-term CAKE stakers but also to the overall CAKE ecosystem and ultimately benefit every CAKE holder.
And this is only the beginning of the beautiful marriage of fixed-term CAKE staking and governance voting … We are already cooking more exciting dishes!
Stack ‘em!
The Chefs 🐰🥞
