According to ChainCatcher, Pendle announced on Monday that it will replace vePENDLE with a new liquid staking token, sPENDLE, as its primary governance token to address significant barriers limiting broader adoption. Issues with vePENDLE include: long-term locks that cannot be redeemed early, inability to be used across platforms (non-transferable), and overly complex governance (requiring weekly voting participation). Despite generating over $37 million in rewards by 2025, the complex voting mechanism has led to reward concentration among a small group of professional users. sPENDLE will improve upon these issues by introducing a 14-day withdrawal period (or a 5% fee for immediate withdrawal), enabling usage across multiple DeFi platforms for restaking, and simplifying governance (users only need to vote on key proposals, PPP, to receive rewards). The official announcement revealed that vePENDLE locking will be paused on January 29 to complete the transition.
Pendle Deprecates vePENDLE in Favor of sPENDLE to Simplify Governance
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Summary
Pendle announced the replacement of vePENDLE with sPENDLE as the new governance token. This change aims to simplify participation and accelerate adoption. Previously, vePENDLE required long lock-up periods, did not allow early redemption, and involved a complex voting process. In contrast, sPENDLE offers 14-day withdrawal periods, cross-platform restaking capabilities, and a more user-friendly governance experience. The token launch announcement follows the completion of a transition on January 29, after which vePENDLE locking was paused.
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