Abstract:
This proposal aims to strengthen the value of mCAKE and its peg to CAKE through two primary actions.
First, 20% of mCAKE earnings from the mCAKE Staking Pool, mCAKE Stability Vault (SV), and mCAKE/CAKE Cakepie Pool will be allocated to buyback and burn mCAKE.
Second, we propose increasing CKP emissions by 120,527.8689 CKP annually to further support mCAKE’s peg which will be strategically deployed to support it through various methods, such as incentivizing mCAKE single-sided vaults on DEXs, increasing CKP emissions to mCAKE pools and buybacks.
Motivation:
The mCAKE token plays a critical role in Cakepie’s ecosystem representing the foundation of Cakepie’s meta-governance model. Ensuring its stability and alignment with CAKE is essential for maintaining user confidence, incentivizing participation, and safeguarding the platform’s long-term sustainability.
The proposal to allocate 20% of mCAKE earnings for buyback and burn directly increases the intrinsic value of mCAKE by ensuring that each token is backed by more than 1 veCAKE. This approach supports the token’s peg and provides stakeholders with added assurance of value.
Additionally, increasing CKP emissions by 120,527.8689 CKP annually offers strategic flexibility to maintain the CAKE/mCAKE peg. The current total CKP emission is 379,472.1311 CKP per year, approximately 3.79% of the total CKP supply. The proposed increase represents a proportional adjustment to address evolving needs within the ecosystem. The additional emissions will be deployed across multiple initiatives, such as incentivizing mCAKE single-sided vaults on DEXs, boosting rewards in the mCAKE Staking Pool and mCAKE Stability Vault, or conducting direct mCAKE buybacks. This approach ensures that emissions are utilized effectively to bolster mCAKE’s utility and stability while addressing potential market fluctuations.
By implementing these measures, Cakepie strengthens its ecosystem, enhances the attractiveness of mCAKE, and solidifies its commitment to providing value for its stakeholders.
Specification:
- Allocate 20% of mCAKE earnings from the mCAKE Staking Pool, mCAKE Stability Vault, and mCAKE/CAKE Cakepie Pool specifically for the buyback and burn of mCAKE.
- Increase CKP emissions by 120,527.8689 CKP annually to support mCAKE peg stability.