Pendle: On January 29, the new Algorithm Incentive Model (AIM) will be launched, reducing emissions by approximately 30% and significantly improving efficiency.

Foresight News reports that Pendle announced the official launch of the new algorithm incentive model (AIM) at 8:00 on January 29. The emission will be reduced by approximately 30% and efficiency will be significantly improved. Emissions will be automatically allocated based on each project’s actual market contribution to the protocol and its users, with allocation weights referencing TVL and fee income.

New liquidity pools can receive higher incentives based on total locked value to promote liquidity growth; over time, the focus of incentives will shift to fee income. Protocols can amplify rewards through their own external incentive measures, and Pendle will additionally provide up to 40% extra incentives. Furthermore, Pendle stated that with the removal of ve incentive bonus mechanisms, the annualized yield for LPs is expected to increase, especially in pools with higher trading volumes.