Pendle Finance has crossed a major milestone, with more than 100 million PENDLE tokens now staked. That figure represents roughly 36% of the project’s total supply. Simultaneously, token emissions have been slashed by 71%.
The protocol scrapped its vePENDLE vote-escrowed system earlier this year. The old lockup model saw only about 20% of tokens actively locked, failing to align long-term incentives. It was replaced by sPENDLE, a liquid staking mechanism with a 14-day withdrawal period. The jump to a 36% staking rate validates the change, showing users will commit capital when given flexibility.
A new Algorithmic Incentive Module, or AIM, dynamically manages emissions. It was originally designed for a 30% reduction but far exceeded expectations by cutting emissions by 71%.
Since the launch of sPENDLE, Pendle has executed open-market buybacks of over 1.96 million PENDLE tokens, all distributed directly to stakers. Participants also received approximately $1.5 million in airdrops.
The vePENDLE model concentrated governance power while most holders sat on unlocked tokens. The new 14-day withdrawal window prevents speculative hot money from gaming rewards without demanding a multi-year commitment. The circulating supply is now near 171 million tokens out of roughly 278 million total. With 100 million staked, the floating supply available for trading is meaningfully smaller.
Investors should monitor whether staking participation continues to climb and the sustainability of buybacks funded by genuine protocol revenue. However, risks remain. A rapid market downturn could overwhelm the 14-day withdrawal buffer, creating a cascading effect of sell pressure from locked-up liquidity. This scenario remains largely untested under severely adverse conditions.