Pendle’s plan to move away from vote-escrow (ve) tokenomics is sparking debate within the decentralized finance (DeFi) community, with some builders calling it a needed upgrade and others warning it could hurt long-term alignment.
Pendle, which boasts a total value locked (TVL) of over $3.5 billion, said it will replace vePENDLE with sPENDLE, a new token that removes multi-year locks and instead uses a 14-day withdrawal period. The protocol also said it will switch from manual voting to an algorithm-based emissions model, which aims to cut overall emissions by about 30%.
The change is a major shift for Pendle, and for DeFi more broadly, since vote-escrow models are widely used to manage governance and incentives. Pendle said the new setup is meant to be easier to use and more flexible for token holders.
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