Pendle has recently made a big move—launching the new sPENDLE, which will be available for staking starting January 20th. What does this mean? The old vePENDLE model will gradually phase out, and sPENDLE will become the new governance and yield token.

Honestly, this change is quite interesting. The previous vePENDLE system required locking tokens for several years, which was a high barrier for users wanting to participate in governance. Now, sPENDLE has a 14-day exit period, significantly increasing flexibility—no longer being locked for a long time, and the cost to participate in governance and earn yields is greatly reduced.

What’s more attractive is the adjustment in the yield distribution logic. Pendle protocol’s revenue will no longer accumulate but will be used to buy back PENDLE tokens, which are then distributed to eligible sPENDLE holders. This effectively provides token holders with real cash flow returns, not just governance rights.

This mechanism design is somewhat like balancing three things: lowering participation barriers, increasing flexibility, and straightening the incentive chain. For project teams, it can attract more community participation; for token holders, it means less lengthy lock-up periods and more actual buyback dividends. This iteration of DeFi governance tokens is worth paying attention to.