SAFE Tokens Soar Amid Community Support as Unlocking Unleashes Potential

Safe, the governance token of decentralized finance custodian Safe Protocol, has become transferable after a two-year lock period. The token's price initially declined by 19% after its unlock, but has since stabilized. The token's fully diluted valuation stands at over $2.8 billion with a current circulating supply of 427 million. Safe's transferability was enabled after a SafeDAO governance vote, with over 99% of participants accepting the proposal. The token is now listed on OKX, a cryptocurrency exchange, for spot trading.

Unlocking Safe Protocol: SAFE Tokens Unleashed with Overwhelming Community Support

In a highly anticipated move that has captivated the decentralized finance (DeFi) community, Safe Protocol's native governance token, SAFE, has become fully transferable. The official Safe Governance X.com account announced the unpausing of the Safe token contract on Tuesday, April 18, 2023, marking a significant milestone in the project's governance and growth trajectory.

Since its unlock, the SAFE token has experienced a noticeable price adjustment, initially declining by over 19%, before settling at around $2.8 at 6 a.m. ET on Wednesday, April 19. Despite this initial fluctuation, the token's fully diluted valuation remains robust, exceeding $2.8 billion, according to data from Coingecko. SAFE has a maximum supply of one billion tokens, with a current circulating supply of 427 million.

The release of SAFE tokens into active circulation culminates a period of approximately two years during which the tokens were locked following their initial airdrop in October 2022. This extended lock-up period was implemented as a deliberate strategy to ensure the project's stability and allow ample time for community governance to mature.

In an exclusive statement to The Block, a Safe spokesperson provided insights into the rationale behind the token's extended frozen period. "The decision to enable SAFE token transferability was guided by the principles of SafeDAO governance," the spokesperson explained. After the community voted against transferability in late 2022, SafeDAO established five key milestones that needed to be met before triggering a renewed vote on the matter.

Over the course of the past year, these milestones were thoroughly discussed and debated within the Safe community. On April 15, a DAO voting period concluded with an overwhelming majority of over 99% of participants approving the proposal to unpause the Safe token contract and enable its transferability.

"Token transferability is a pivotal moment for any project, and we believe that the responsibility for such a decision should ultimately rest with the DAO," the Safe spokesperson emphasized. "The DAO, composed of token holders and delegates, should have the authority to determine when and how token transferability is implemented, rather than a limited group of core contributors."

The Safe spokesperson acknowledged the eagerness within segments of the community to unlock the SAFE token's transferability. However, they reiterated the project's unwavering commitment to "progressive decentralization, prioritizing secure infrastructure, fair governance frameworks, and transparent resource allocation."

In a significant development coinciding with the SAFE token unlock, leading cryptocurrency exchange OKX announced on Monday, April 17, that it would list SAFE for spot trading. SAFE deposits became available on April 22 at 11:00 a.m. ET, with withdrawals commencing on April 24 at 6:00 a.m. ET. After a thorough review process, OKX will list the SAFE/USDT trading pair.

"Safe includes a comprehensive suite of account abstraction infrastructure and the industry-standard multi-sig wallet," OKX stated in a recent blog post. "The project aims to empower Ethereum accounts with smart contract functionality, unlocking novel use cases in AI, staking, gaming, SocialFi, DeFi, and payments, all facilitated by gasless transactions, effortless face-ID-like logins, seamless onramps, robust recovery mechanisms, and more."

SafeDAO, formerly known as Gnosis Safe, evolved from the custody solution offered by Gnosis DAO. The Safe Protocol has emerged as a leading provider of decentralized custody and account abstraction solutions for DeFi applications, enabling users to securely manage their digital assets and interact with DeFi protocols.

The unlocking of SAFE tokens marks a transformative chapter in the evolution of Safe Protocol. With its robust governance framework, engaged community, and strategic partnerships, Safe is well-positioned to continue its mission of enhancing the security, usability, and accessibility of DeFi for users worldwide.