Pendle Introduces sPENDLE to Replace vePENDLE in Governance Reset

This article was first published on The Bit Journal.

Pendle has announced a redesign of its token governance system, moving away from vePENDLE and positioning sPENDLE as the new center of rewards and decision-making. The Pendle governance token discussion has been building for months inside DeFi circles, but the core message is straightforward: the old model did not pull in enough everyday users, so the protocol is trying a structure that feels lighter, more liquid, and easier to use.

vePENDLE was built on a vote-escrow idea. Users locked PENDLE to gain voting power, then used votes to steer incentives toward specific markets. Pendle documentation explains that voting for a pool entitled vePENDLE holders to 80% of the swap fees collected by that pool, distributed pro rata among voters. It rewarded commitment, but it also asked participants to accept long lockups and a higher learning curve.

Why vePENDLE started to feel like a gated club

Locking can be attractive in calm markets, but DeFi rarely stays calm. When yields move quickly, capital wants flexibility. A governance token that is effectively trapped can become something people admire from a distance but rarely adopt in practice. That creates a second problem: influence concentrates among a smaller set of wallets that optimize voting and farming, while newer users feel like spectators.

Pendle governance token: what changes with sPENDLE

Pendle’s new setup introduces sPENDLE and makes it the primary route into governance rewards. In a public statement, the project said: “sPENDLE will replace vePENDLE as the governance and reward token,” describing it as a liquid staking token representing 1 PENDLE deposited into the staking module. The Pendle governance token shift matters because it replaces a long-term lock mindset with a staking-like posture that can be reused across DeFi strategies.

The change is also being described by market commentators following the rollout. Analyst Jiraiya summarized the intent by calling sPENDLE “a liquid fee and governance token with a 14-day withdrawal period.” Even when details evolve, the direction is consistent: the Pendle governance token becomes less about patience contests and more about practical participation.

What holders should watch next

After a governance reset, incentives are the real scoreboard. If adoption widens, the Pendle governance token design will show it in the numbers: more wallets staking, a healthier spread of voting power, and stronger liquidity around the new token format. It also helps that Pendle’s revenue engine is tied to real usage. The protocol collects fees from yield-related activity, and those flows underpin long-term token value.

For traders, the Pendle governance token update may change supply dynamics too. It also changes how quickly sentiment can show up on-chain. When users can enter governance exposure without multi-year locks, participation can rise during major proposals and cool off when markets quiet down, which can make governance feel more responsive, not performative.

That flexibility is part of the Pendle governance token bet. When fewer tokens are locked for years, more supply can circulate, which improves price discovery and makes hedging easier. At the same time, liquid governance assets are easier to integrate, whether as collateral, yield legs, or strategy components across DeFi.

Conclusion

Pendle is effectively choosing accessibility over friction. If sPENDLE succeeds, the Pendle governance token will feel less like a specialist tool and more like a normal ownership asset that regular users can hold, move, and still participate with.

Glossary of Key Terms

vePENDLE: Pendle’s vote-escrow governance system tied to locked PENDLE.
sPENDLE: A liquid staking-style token representing deposited PENDLE and used for governance and rewards.

Frequently Asked Questions

What is the Pendle governance token now?
Pendle has stated that sPENDLE will replace vePENDLE as the governance and reward token.

Do vePENDLE holders earn swap fees?
Pendle documentation says vePENDLE voters are entitled to 80% of the swap fees from the pool they vote for, distributed pro rata.

References

docs/pendle/finance

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