Safe Protocol Implements Transferability Features on Governance Token

The Safe token (SAFE), the governance token behind the decentralized finance custodian Safe Protocol, has become transferable. The Safe Governance announced via its official X account that SAFE has officially been unlocked, thus opening the door for the token to become movable.

Tokenomics of SAFE

According to Coingecko’s data, the SAFE token has a fully diluted valuation of $2.8 billion. Currently, 427 million tokens are in circulation from a total supply of 1 billion. Upon the announcement of the token unlock, the token’s price dropped by over 19% and was changing hands for $2.8 at 6 a.m. ET. At the time of this writing, SAFE is trading at $2.74, demonstrating a decrease of 21.2%. Despite this, the market capitalization stands at over $1 billion, pushing it into the Unicorn list.

SEP22 has been executed! The Safe Token Contract is officially unpaused and SAFE is transferable, ushering a new era for Safe{DAO} 🔰 pic.twitter.com/MgFSn3cFBW

— Safe Governance (@safegovernance) April 23, 2024

Notably, the SAFE token has been locked for nearly two years after an airdrop launch in October 2022, coinciding with the week that the FTX derivatives exchange collapsed.  Essentially a token for governance within SafeDAO, SAFE aligns the interests of stakeholders and the community to maintain a healthy and dynamic Safe ecosystem.

The token gives voting power to holders within SafeDAO. The goal is to give every SAFE token holder more authority as the project develops. SAFE tokens were created non-transferable from the beginning of the DAO’s existence. This means that users cannot transfer or sell the tokens on exchanges.

At the time, a few DAO members claimed that the DAO was not “mature enough” to release its tokens. They based their argument on the absence of a governing framework. However, a few stewards argued that delaying token transferability enabled the DAO to “focus on its core mission.”

Commenting on the recent development, a Spokesperson for Safe stated, “The decision to make SAFE tokens transferable, along with the process of reaching this point, was guided by SafeDAO governance. After the community decided against transferability at the end of 2022, SafeDAO aligned on five milestones to be passed to re-issue a vote on transferability.”

These five milestones were said to have been thoroughly debated last year before a DAO vote round concluded on April 15. During this voting round, more than 99% of participants approved the proposal to un-pause the Safe token contract and enable transferability.

OKX Plans to List SAFE

OKX, a leading crypto exchange has announced plans to list SAFE on its platform. OKX stated in a Monday release that SAFE deposits opened on April 22 at 11:00 a.m. ET, while withdrawals begin at 6:00 a.m. ET on April 24. The firm added that it will list the SAFE/USDT trading pair following a review.

Overall, the design space of utilities for the SAFE token is anticipated to expand as the Safe ecosystem evolves. The crypto community is encouraged to be part of the exploration and implementation of future SAFE token utilities.

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