Pendle's decision to phase out vote-escrow (ve) tokenomics in favor of a new model is stirring debate within the DeFi community. The protocol, with over $3.5 billion in total value locked, plans to replace vePENDLE with sPENDLE, which features a 14-day withdrawal period instead of multi-year locks. Additionally, Pendle will transition from manual voting to an algorithm-based emissions model, aiming to reduce emissions by 30%. The move has drawn criticism from some, including Curve founder Michael Egorov, who argues that ve-tokenomics effectively aligns long-term incentives. However, others, like Maple CEO Sid Powell, view the change as a necessary evolution, citing the complexities and liquidity issues associated with vote-escrow models. Pendle's new system will also utilize protocol revenue for PENDLE buybacks, benefiting sPENDLE holders. The protocol's native token, PENDLE, saw an 11% increase, trading at $2.11.