Pendle's latest upgrade is quite exciting. In simple terms, it aims to completely overhaul the original PENDLE token economy into a new system—introducing sPENDLE.

The core change is this: the protocol's earnings are no longer idle; they are directly used to buy back PENDLE tokens, which are then distributed to active sPENDLE holders within the ecosystem. This effectively aligns revenue with token holder interests.

From a user perspective, sPENDLE offers good flexibility. If you want to cash out quickly, you can do so with a 5% fee for immediate redemption; if you're not in a hurry, you can wait for a 14-day penalty-free exit period. Additionally, since sPENDLE is a standardized, composable token, it can theoretically be integrated seamlessly with various DApps, providing more possibilities for developers and users.

There are also major changes in governance—moving away from manual voting to an algorithmic, automatic emission model. Pendle's goal with this new model is to reduce PENDLE's emission by 20 to 30%, while also improving capital allocation efficiency. This seems to reduce inflation pressure while increasing the token's value.

Key dates to note: the vePENDLE lock-up will be paused on January 29. Users holding vePENDLE before then should not worry; they can receive a special multiplier bonus based on their remaining lock-up period, with a maximum of 4x. During the transition, rewards are also calculated based on this virtual balance, so early users have an additional earnings guarantee. It looks like Pendle is taking care of early participants while laying the groundwork for a new token economy.