Decentralized crypto exchange PancakeSwap has implemented a new voting system called “Gauges” and sunsetted its vCAKE metric, replacing it with a new metric called “veCAKE.”
Your CAKE, Your Voice
Introducing Gauges Voting and veCAKE
More governance power
Control CAKE emissions
Deeper liquidity
Vote Incentiveshttps://t.co/doaCruwMV6 pic.twitter.com/GxHGHdIG4J— PancakeSwapEveryone’s Favorite DEX (@PancakeSwap) November 22, 2023
The system allows governance tokenholders to vote for additional rewards to be distributed to particular pools, according to a Nov. 22 blog post.
PancakeSwap is the third-largest decentralized exchange (DEX) in terms of total value locked (TVL), according to blockchain analytics platform DefiLlama. At the time of publication, it had over $1.4 billion TVL. Its governance token, CAKE, is distributed as a reward to users who provide liquidity. It is governed by a decentralized autonomous organization, CakeDAO, which comprises all CAKE holders.
Under the new system, CAKE holders can vote on which pools will receive additional rewards every two weeks. However, to gain the ability to vote, they must lock their CAKE into a smart contract for a set period. The longer they lock their tokens up, the more voting power they receive….
