**Proposal:** Amend our current profit allocation strategy to purchase CAKE (PancakeSwap token) instead of ETH with 45% of The Basket's compounded profits.

**Effective Date:** 1st of March

**Objective:** Leverage CAKE's potential for high yield farming and governance participation within the PancakeSwap ecosystem, aiming for diversified growth and increased asset value.

### **Background**

The Basket currently allocates 45% of its profits to compound by purchasing cryptocurrencies, specifically ETH. Given the dynamic nature of the cryptocurrency market, it's crucial to continually reassess our investment strategy to optimize returns.

### **Rationale for Switching to CAKE**

- **Diversification and Yield:** CAKE provides a unique opportunity for yield farming and staking, potentially offering higher returns than ETH.
- **Governance Participation:** Holding CAKE allows for governance votes in the PancakeSwap ecosystem, offering a chance to influence the platform's future.
- **Market Potential:** CAKE's role in a leading decentralized exchange (DEX) on the Binance Smart Chain presents significant growth opportunities.

### **Anticipated Impact**

- **Enhanced Portfolio Diversification:** By incorporating CAKE, we expect to diversify our investment portfolio further, mitigating risks associated with market volatility.
- **Increased Asset Holdings:** Systematic investment in CAKE is anticipated to steadily increase our asset base, potentially leading to higher overall returns.


### **Potential Risks**

- **Market Volatility:** CAKE, like all cryptocurrencies, faces market volatility risks.
- **Platform-Specific Risks:** Potential security vulnerabilities or operational challenges within the PancakeSwap platform could impact CAKE's value.
- **Regulatory Environment:** Changes in cryptocurrency regulations may influence DeFi platforms and token utilities.

### **Voting Options**

- **Vote FOR:** Approve the shift from ETH to CAKE for the 45% profit allocation strategy.
- **Vote AGAINST:** Maintain the current strategy of purchasing ETH.
- **Vote ABSTAIN:** Indicate neutrality, suggesting further discussion or consideration of alternative strategies.


**Duration:** 24 hrs  
**Quorum:** 10% of total supply  
**Rule:** Majority voting model

Proposal to Adjust The Basket's Cryptocurrency Focus: Switching from ETH to CAKE

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