PancakeSwap Introduces New Voting System ‘Gauges’ for Governance Token Holders
Decentralized crypto exchange Pancakeswap has launched a new voting system called “Gauges” and “veCAKE,” a new vote-escrowed system that allows users to vote on governance proposals and determine CAKE emissions allocations.
According to a Nov. 22 blog post, PancakeSwap, the third-largest decentralized exchange by total value locked (TVL), has unveiled two new features, Gauges Voting and veCAKE, designed to enhance governance influence for CAKE holders. These features aim to stimulate liquidity across pools and increase rewards for CAKE staker.
PancakeSwap wrote in the blog:
“We’re excited to introduce two transformative features: Gauges Voting and veCAKE, revolutionizing our governance system for CAKE Emissions. This strategic update is designed to empower CAKE holders with increased governance influence, boost liquidity across our pools, and supercharge rewards for CAKE stakers.”
PancakeSwap’s governance token, CAKE, is distributed as rewards to liquidity providers and is governed by a decentralized autonomous organization called CakeDAO, consisting of all CAKE holders. The platform currently boasts over $1.4 billion in TVL, making it a prominent player in the decentralized finance (DeFi) space.
Notably, PancakeSwap has phased out its “syrup pool” reward system, previously enabling CakeDAO members to stake CAKE for an additional share of the exchange’s fees. Instead, additional fees will now be distributed exclusively to users holding veCAKE. Participation in PancakeSwap’s DAO governance now relies on veCAKE, a new vote-escrowed system distinct from vCAKE. veCAKE tokens, obtained by staking CAKE, allow users to vote on governance proposals and determine CAKE emissions allocations through Gauges Voting.
“The new Gauges Voting
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