Pendle will begin phasing out vePENDLE and shifting governance and rewards to sPENDLE this month.
The DeFi yield platform said it saw low adoption under the vePENDLE design. As a result, it rebuilt the model around sPENDLE.
In its announcement on X, Pendle said:
“We’re excited to introduce sPENDLE, the next evolution of Pendle tokenomics.”
The team added that the upgrade targets “critical limitations of the vePENDLE system,” while opening new options for PENDLE holders.
Pendle described sPENDLE as a liquid fee and governance token. It will include a 14 day withdrawal period. The change will make the Pendle governance token easier to use across the protocol.
sPENDLE Replaces vePENDLE Locks With a 14 Day Withdrawal Rule
Pendle said vePENDLE created “significant barriers” to broader adoption. A main issue was long lock times. Users could not access funds until the lock ended.
That structure aimed to push long term commitment. However, Pendle said it did not meet that goal.
With sPENDLE, users can unwind and withdraw after 14 days. In addition, they can withdraw instantly for a 5% fee. Pendle tokenomics will therefore shift from fixed locks to a model with more flexible exits.
Pendle also addressed transfer limits. vePENDLE was non transferable, so it could not move across other DeFi platforms.
By contrast, Pendle said sPENDLE will integrate with several DeFi platforms. The protocol said this setup will allow wider use, including restaking.
Pendle Governance Token Update Cuts Weekly Voting Pressure
The Pendle governance token system also changes how users earn governance rewards. Pendle said the old weekly vote to earn model required active engagement. It also required deeper knowledge to optimize rewards.
Pendle said:
“The weekly vote to earn system required a deep understanding of DeFi and market dynamics to optimize rewards.”
It also said:
“Despite generating over $37M in 2025, the complex voting mechanics meant that rewards concentrated among vePENDLE holders… a tiny fraction of users.”
Under the updated Pendle governance token structure, users will vote only on “critical” Pendle Protocol Proposals (PPP) to stay eligible for governance rewards.
When no PPP exists, holders will remain eligible automatically. This change removes constant weekly voting from the default flow.
sPENDLE Launch Date, vePENDLE Pause, and Pendle Buybacks
sPENDLE staking will go live on Tuesday, according to the announcement. Meanwhile, Pendle will pause new vePENDLE locks on Jan. 29. After that, the protocol will take a snapshot of user vePENDLE balances to support the switch.
On the same day, Pendle said the new governance structure under sPENDLE will fully roll out. That timeline ties the sPENDLE rollout to both token changes and voting changes.
The update also links governance rewards to protocol revenue. Pendle said it will conduct PENDLE token buybacks using up to 80% of protocol revenue.
It will then distribute those buybacks as governance rewards. Separately, DeFiLlama data placed Pendle as the 13th largest DeFi platform by total value locked, at almost $3.5 billion.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: January 20, 2026 • 🕓 Last updated: January 20, 2026
