DeFi yield trading protocol Pendle said it will begin phasing out its vePENDLE governance token this month, replacing it with a new liquid token called sPENDLE. The change marks a shift in Pendle’s tokenomics as the platform seeks to address low participation tied to long lockups and complex governance mechanics.
According to the team, vePENDLE’s non-transferable design and extended lockup periods limited flexibility and interoperability, creating barriers for most users. While Pendle’s total value locked has grown to nearly $3.5 billion, governance participation remained concentrated among a small group of advanced users. The new sPENDLE token introduces a 14-day withdrawal period and can be integrated across other DeFi platforms.
Pendle said the revised governance model will reduce the need for frequent voting while maintaining incentives through protocol fee distribution. The update reflects a broader trend among DeFi protocols toward liquid governance structures designed to balance decentralization with usability.
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