Abstract
This proposal asks vlMGP holders to decide whether Magpie DAO treasury waive 50% of its entitlement to the Release Payment provided by PancakeSwap to be distributed to vlCKP holders. This amount would instead be redistributed to retail vlCKP holders. This is a gesture of support toward individual community members who are more significantly impacted by the recent changes to PancakeSwap’s governance model.
Motivation
PancakeSwap has retired veCAKE and the entire voting incentive market with tokenomics 3.0. Due to this unforeseeable decision which was entirely out of our control, this meant the loss of Cakepie’s core mechanism and the central voting power of vlCKP.
To acknowledge the efforts of Magpie, PancakeSwap will provide $1.5 million in stablecoins to all affected vlCKP/CKP holders, which includes users and the Magpie DAO treasury. The Cakepie Treasury currently holds 74 BNB and 52,456 CAKE, which we will include as supplemental goodwill payments on top of the amounts from PancakeSwap.
Given Magpie’s early role in launching Cakepie, it holds over 937,500 vlCKP/CKP and is therefore entitled to a meaningful portion of Release Payment. While Magpie’s share is fully legitimate, we recognize that many retail vlCKP holders trusted the long-term vision of Cakepie and are now facing the sudden impact of the veCAKE removal. This proposal is about prioritizing fairness.
Since the Magpie ecosystem is user-centric, in light of these challenging times, we are proposing that Magpie DAO treasury waive 50% of the Release Payment it is entitled to in favour of vlCKP/CKP holders.
Magpie would help ensure that more of the Release Payment goes directly to smaller, individual stakeholders who stand to benefit more from this support. This measure is important for strengthening the entire MegaDao, reinforcing the vision that Magpie has the capacity to help SubDAOs without impacting their operation or financing.
Specification
Magpie will waive 50% of its own Release Payment. This amount will be distributed proportionally among retail vlCKP holders, using a weighted formula based on CKP-to-mCAKE ratios as stated in CIP#16.