TechFlow news, January 20 — According to official announcements, Pendle has unveiled an evolved tokenomics model introducing sPENDLE, a more liquid staking token. sPENDLE will replace vePENDLE as the protocol’s primary governance and rewards token, addressing issues such as low capital efficiency, complex mechanisms, limited participation, and unfair token distribution under the previous model. This upgrade aims to provide better yield opportunities for more PENDLE holders and further drive the healthy and robust growth of the Pendle protocol.
This upgrade follows extensive community feedback, careful design considerations, and active discussions with partners. Key updates include:
1. Staking Mechanism Update: The vePENDLE mechanism will be replaced by the sPENDLE mechanism. sPENDLE can be freely transferred while staked, without requiring long-term locking, and can be unstaked within 14 days.
2. Protocol Revenue Buyback and Distribution: Protocol revenue will be used to repurchase $PENDLE tokens, which will then be distributed to eligible sPENDLE holders.
3. Emissions Mechanism Update: The manual voting system will be upgraded to an algorithmic emissions model, significantly improving resource allocation efficiency, while reducing total $PENDLE emissions by approximately 30%.
4. Bonus Incentives for Existing vePENDLE Holders: Current vePENDLE holders will receive boosted sPENDLE rewards of up to 4x based on their remaining lock-up duration.
With sPENDLE staking officially launching on January 20, 2026, vePENDLE locking will be suspended on January 29 at 00:00 UTC. A snapshot of vePENDLE balances and remaining lock-up periods will be taken to initiate the new $PENDLE incentive structure.
