The CAKE community has proposed a new plan. I don’t think everyone needs to overinterpret it; it’s actually quite simple. It has almost no direct impact on us regular token holders. It’s just a small optimization by the project team regarding the “treasury bookkeeping” method.

Let’s use plain language to give an analogy. The PancakeSwap (CAKE) treasury is like a small family piggy bank that receives various “dividends” every day. The old approach was quite rigid. Whether the funds coming in were stablecoins like USDT or all kinds of miscellaneous altcoins, the project team would first sell them all, convert everything into their own CAKE tokens, and then lock them in a cabinet for storage.

When it’s time to pay the team’s wages, cover server costs, or handle operational expenses, they would sell the CAKE in the cabinet to convert it into cash. This buying and selling process not only incurs transaction fees but also, if the market isn’t doing well, selling CAKE can put downward pressure on the token’s price.

The new proposal simplifies this process. Data shows that about 29% of the money collected in the treasury is in stablecoins (which is like cash). The new rule is: this “cash” portion will stay as is, directly remaining in the account as cash flow, and will be used directly for paying wages and bills in the future. The remaining 71% of non-stablecoin dividends will still be converted into CAKE and stored. Moreover, the treasury’s earnings account for only 8% to 19% of the platform’s profits. The rest includes shares from treasury and LP token burns, so the entire treasury doesn’t play a major role, let alone just the 29% in the treasury.