“NO MORE WAIT, NO MORE DELAY—PENDLE PUTS FLEXIBILITY ON DISPLAY.”
What Changed in Pendle’s Governance Model to Boost Investor Confidence? The native coin of the decentralised finance (DeFi) protocol Pendle increased by almost 9% following the announcement of a significant change to its governance framework.
On the day of the announcement, PENDLE’s price increased to about $2.07, demonstrating the market’s significant belief in the protocol’s new course.
The rise came when Pendle decided to replace vePENDLE, its current governance token format, with sPENDLE, a new liquid staking token.
According to the team, the modification attempts to address capital lockups, poor user involvement, and a convoluted voting procedure that limited governance in the previous system.
Users are no longer required to lock their tokens for several years under the new paradigm. Instead, holders can enter and leave positions more easily because to sPENDLE’s liquid staking feature. After a 14-day penalty-free period, users can withdraw their tokens; otherwise, they must pay a 5% fee for rapid redemption.
Additionally, Pendle intends to change the way protocol revenue is distributed to consumers. Revenue will be used by the system to repurchase PENDLE tokens, which will then be distributed to current sPENDLE holders.
Participants now receive a more transparent and direct portion of the protocol’s profits.
Another important change eliminates manual voting. Token emissions are anticipated to be reduced by 20% to 30% when Pendle switches to an algorithm-based emissions mechanism. This action should decrease long-term token dilution and increase efficiency.
With rewards rising up to four times, is Pendle giving loyal holders the smoothest upgrade in DeFi? Based on their remaining lock term, current vePENDLE holders will get increased sPENDLE balances up to four times in order to facilitate the changeover. New Pendle locks will pause after a picture on January 29.
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