The DeFi yield protocol Pendle is removing its governance token, vePENDLE, and introducing a new token, sPENDLE.
According to an announcement posted on X, staking for sPENDLE begins on January 20. The old token had strict locking rules and could not be used on other services.
With sPENDLE, users can either wait 2 weeks for withdrawals or unlock instantly for a 5% fee. Support for locking vePENDLE will end on January 29.
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The project explained that vePENDLE also required holders to make votes every week, which deterred many users who found the approach too complex.
Currently, the protocol will allocate up to 80% of its income to purchase PENDLE and offer rewards to sPENDLE owners through this easier-to-understand arrangement.
Once users have sPENDLE or put it into supported services, they will receive rewards even if they do not participate in each poll, unless a key “Pendle Protocol Proposal” is presented.
The refreshed setup assigns an algorithm to handle token distribution. This is set to lower PENDLE output by about 30% and to improve the distribution of rewards to pools with higher activity.
Holders of vePENDLE tokens will also get a loyalty benefit when their amounts are captured on January 29. Depending on how much time remains on their lock, holders may earn up to 4 times as much “virtual sPENDLE”.
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