DeFi protocol Pendle will begin phasing out its vePENDLE governance token this month, replacing it with a up-to-date liquid staking token called sPENDLE as part of a broader overhaul aimed at increasing adoption.
The profit trading platform said the long outages, complexity and lack of interoperability built into vePENDLE have become “significant barriers” for most users, despite forceful development of the underlying protocol.
In announcement On Monday via X, Pendle unveiled sPENDLE, a up-to-date liquid governance and fee token that will replace vePENDLE as the main governance component of the protocol.
“We are excited to introduce sPENDLE, the next evolution of Pendle tokenomics. This upgrade aims to address critical limitations of the vePENDLE system while unlocking new capabilities for PENDLE owners and the protocol,” Pendle said.
the team added that sPENDLE is a floating fee and governance token with a 14-day grace period.
sPENDLE staking will launch on Tuesday, while vePENDLE locks will be paused on January 29. A snapshot of users’ vePENDLE balances will then be taken to lend a hand with the transition.
On the same day, the up-to-date management structure within sPENDLE will be fully implemented.
According to data by DeFi Llama Pendle is the 13th largest decentralized finance (DeFi) platform by total value of almost $3.5 billion.
Better tokenomics a potential boon for Pendle users
In the post, Pendle stated that despite forceful platform development over the past few years, vePENDLE has ultimately created “significant barriers” that have circumscribed “broader adoption.”
One of the key factors was the long lock-in period of the asset, as a result of which users were unable to recover their funds before the set periods expired.
Pendle said it was designed to ensure long-term commitment to the protocol but fell brief of its goal. To address this issue, sPENDLE can be locked and withdrawn at any time after the 14-day unwinding period or immediately for a 5% fee.
Other issues included vePENDLE’s lack of interoperability as it was not portable, meaning it could not be used on other DeFi platforms.
To solve this problem, spENDLE will be integrated with multiple DeFi platforms, allowing the asset to be used for purposes such as resource reuse.
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Pendle also found the management structure to be too complicated for most users because it requires dynamic weekly engagement to earn rewards from management contributions.
“The weekly vote-to-earn system required a deep understanding of DeFi and market dynamics to optimize rewards,” Pendle said.
“Despite generating over $37 million in 2025, complex voting mechanics meant that rewards were concentrated among vePENDLE holders with enough expertise to successfully navigate the system – a small fraction of users,” Pendle added.
To solve this problem, Pendle is introducing a up-to-date management structure that makes it much easier for holders. Instead of weekly meetings, holders will only need to vote on “critical” Pendle Protocol (PPP) proposals to remain eligible for governance awards.
If there is no PPP to vote on, it will automatically remain eligible.
Under this structure, Pendle will also conduct PENDLE token purchases, using “up to 80% of protocol revenues” to distribute through governance rewards.
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