Dynamic

PancakeSwap: 4% annual deflation rate target is a non-binding cap, and the amount burned is dynamically adjusted based on trading volume

ChainCatcher message, the PancakeSwap team responded to the community regarding the CAKE 3.0 tokenomics proposal.Regarding the 4% annual deflation target, the 4% is based on data from the past two years. Deflation is not limited to 4% per year; the actual amount of destruction will be linked to trading volume, and if the protocol performs well, a higher deflation rate may be achieved. For the mCAKE and sdCAKE exchange issue, the team confirmed that a 1:1 exchange ratio will be maintained, and users need to operate through the original delegation platform.On the topic of holding incentives, the team pointed out that they will adjust the fee distribution, shifting part of the liquidity provider fees towards a buy-and-burn mechanism, which is expected to improve the destruction efficiency to 15%. They also emphasized that CAKE will still play a core role in governance, IF0, and other scenarios. In response to concerns about the efficiency of veCAKE emissions, the team believes that the current proposal can more effectively address core issues and avoid long-term drawbacks caused by short-term fixes.Regarding the issue of governance decentralization, the team stated that they will shift to a direct voting model based on CAKE holdings and consider introducing a delegation feature in the future. For geographical restrictions, the team explained that IF0 will remain open, while TGE has limitations due to compliance requirements from partners.Finally, the team committed to providing real-time destruction data dashboards to maintain transparency in emission decisions and ensure the smooth operation of the veCAKE system during the transition period. During the transition, the veCAKE system will continue to operate until the proposal voting is completed, ensuring a smooth transition.

Ethereum ACDC#144: Developers plan to include EIP 7742 in Pectra, which can dynamically set blob gas targets and maximum limits

ChainCatcher news, Galaxy's Vice President of Research Christine Kim summarized the main points of the 144th Ethereum Core Developers Consensus Meeting (ACDC #144):Developers agreed to include a new code change EIP 7742 in Pectra, which allows the beacon chain to dynamically set the network's target and maximum blob gas limits. The inclusion of EIP 7742 indicates that developers may also increase the target and maximum blob gas limits in Pectra. However, some developers raised concerns during the call that incorporating additional EIPs (especially EIP 7742) would delay the activation of other Pectra code changes on the mainnet. Developers also discussed the testing progress of Pectra and PeerDAS development.L2 rollup Base developer Francis Li introduced the urgency and fundamental principles of increasing blob capacity in Pectra. Li suggested increasing the blob gas target to 5 and the maximum to 8, along with additional work at the network layer, such as implementing engine_getBlobsV1. Busa pointed out that the increase in blob capacity should be combined with the deployment of EIP 7742, which introduces a mechanism to dynamically set blob gas targets and maximum limits through CL. Busa stated that the current mechanism for setting these parameters is difficult to change, and introducing EIP 7742 would ensure that developers can easily adjust these settings in the future, such as upgrades like PeerDAS. However, Busa also noted that EIP 7742 requires additional work from the EL and CL client teams for deployment and could delay Pectra's timeline by 1 to 2 months. He urged developers to consider starting the work on deploying EIP 7742 as soon as possible to avoid unnecessary delays in the Pectra upgrade.
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