Safe Protocol Implements Transferability Features on Governance Token

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The governance token of Decentralized Finance custodian Safe Protocol, named SAFE, can now be transferred. Safe Governance made this announcement through its official X account, indicating that SAFE has been unlocked, enabling the token to be moved.

Tokenomics of SAFE

Based on information from Coingecko, the value of all SAFE tokens, taking into account those that have yet to be released, is estimated to be around $2.8 billion. At present, approximately 427 million SAFE tokens are in circulation out of a total supply of one billion. Following the announcement of the token release, the price of SAFE dropped by more than 19% and was being sold for roughly $2.8 at 6 a.m. ET. As of now, the price of SAFE is sitting at $2.74, representing a decrease of 21.2%. Despite this decline in price, the market value of SAFE remains above $1 billion, placing it within the ranks of the Unicorn list.

SEP22 has been activated! The Safe Token Contract is now operational, allowing the transfer of SAFE tokens. This marks a new phase for Safe{DAO}. 🔐🔵
— Safe Governance (@safegovernance) April 23, 2024

Significantly, the SAFE token has been held in reserve since its distribution during the October 2022 airdrop. This was around the same time that FTX, the derivatives exchange, experienced collapse. The SAFE token serves as a tool for governance within SafeDAO, ensuring that stakeholders and the community work together to keep the Safe ecosystem thriving and vibrant.

In simpler terms, each SafeDAO token bestows voting privileges upon its owners. The intention is to grant greater influence to SAFE token holders as the project progresses. Notably, these SAFE tokens were initially issued as non-transferable assets, preventing users from trading or transferring them on external exchanges.

During that period, some members of the Decentralized Autonomous Organization (DAO) expressed concerns about releasing its tokens. They believed that the DAO wasn’t ready due to the lack of a clear governance structure. On the other hand, a few stewards suggested that postponing token transferability would allow the DAO to concentrate on its primary objectives.

Based on the latest update, Safe’s Spokesperson explained, “SafeDAO, the governing body for Safe, led the way for making SAFE tokens transferable. This came about following a community vote against transferability towards the end of last year. Subsequently, SafeDAO set five significant milestones to be met before revisiting the transferability issue in another community vote.”

Last year, intense discussions took place among the community regarding the five significant achievements. By April 15, a DAO vote ensued to decide on their implementation. Over 99% of the participants endorsed the plan to activate the Safe token contract, making it transferable.

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.

In simpler terms, as the Safe ecosystem grows, so will the potential uses for the SAFE token. The crypto community is invited to join in discovering and bringing to life new functions for the SAFE token.

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2024-04-23 17:24