PancakeSwap to Share Trading Fee Revenue - CAKE Spikes

Decentralized exchange (DEX) PancakeSwap has announced it will share trading fee revenue with users holding CAKE tokens.

PancakeSwap to Share Trading Fee Revenue - CAKE Surges

According to the official announcement, participants staking CAKE tokens will receive a portion of the trading fee revenue from PancakeSwap starting August 09.

Specifically, users staking CAKE with fixed terms will receive 5% of the trading fee revenue from all PancakeSwap v3 pairs with 0.01% and 0.05% fee tiers on a periodic and weekly basis. These two fee tiers account for 80-90% of the trading volume on PancakeSwap v3.

Chef Mochi, a representative of PancakeSwap, stated:

"The decision to share CAKE revenue is a significant step tied to PancakeSwap's growth. It could also be a long-term initiative for the protocol's future."

The revenue-sharing program will apply to all chains integrated with the platform. In simple terms, in addition to the staking rewards users previously received, they will now have an additional income stream. The distribution schedule is as follows:

• Participants before August 02 will receive rewards on August 09.
• Stakers after August 02 and before August 09 can claim rewards on August 16.
• CAKE stakers in June and July will also receive trading fee rewards starting August 09.

PancakeSwap added:

"The revenue-sharing pool aligns with PancakeSwap's long-term vision of sustainability and community-centric growth. This model helps maintain CAKE's value without dilution and enhances the benefits of holding the token. Additionally, the program serves as an inflation mitigation tool."

Launched in 2020, PancakeSwap is currently the second-largest decentralized exchange by volume and market share, following Uniswap. Initially built on the BNB Chain, the DEX has since expanded to other blockchains, including Ethereum, Polygon zkEVM, Aptos, and most recently zkEVM Era.

Following this announcement, CAKE's price spiked from $1.5 to $1.65, a 10% increase. The coin is now trading around $1.581.

This initiative is expected to provide more value to CAKE holders and strengthen PancakeSwap's position in the decentralized finance (DeFi) market.