Bridging the Gap: Aligning Safe Protocol’s Success with SAFE Token Utility & Value Accrual

Safe Ecosystem General Discussion
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TL;DR Despite Safe managing over $100B in assets and dominating the multisig market, the SAFE token currently lacks a clear mechanism for value accrual. I propose that the DAO prioritizes the implementation of revenue models (such as those discussed in SEP #42) to align the interests of the protocol with its token holders.

1. Motivation

Safe is undeniably the gold standard for digital asset custody on Ethereum. However, there is a concerning disconnect between the protocol’s fundamental growth and the SAFE token’s utility.

Currently, the SAFE token serves purely as a governance instrument. While governance is crucial, it is not sufficient to sustain long-term holder retention and community engagement, especially when the token value does not reflect the protocol’s massive adoption. Without a concrete “Value Accrual” mechanism, we risk losing the most loyal community members who have supported the ecosystem from the beginning.

2. The Core Issue

  • Lack of Utility: There is currently no imperative to hold SAFE other than for voting.

  • Misaligned Incentives: The protocol generates immense value (TVL), but this value does not flow back to the DAO treasury or token holders.

  • Uncertain Roadmap: While there have been discussions (e.g., OBRA, SEP #42), the community lacks a clear timeline on when these revenue models will be actualized.

3. Proposal & Questions to the Leadership

I respectfully request the Safe Ecosystem Foundation and the SafeDAO Guardians/Delegates to address the following:

  1. Revenue Model Implementation: When can we expect the execution of the revenue generation models discussed in SEP #42 (Safe Savings Accounts & Vaults)? We need a concrete roadmap, not just research sprints.

  2. Token Utility Integration: Are there plans to introduce features where SAFE tokens are required for enhanced services (e.g., fee discounts, premium dashboard features, or staking for security modules)?

  3. Buyback & Sustainability: Has the DAO considered using future protocol revenue to buy back SAFE tokens for the treasury or burn them to manage supply, ensuring a sustainable economic model?

We understand the regulatory complexities (compliance is key), but “regulatory caution” should not be an excuse for permanent inaction regarding tokenomics.

4. Conclusion

The community wants Safe to succeed not just as a software product, but as a thriving decentralized economy. To achieve this, the success of the Protocol must equal the success of the Token.

We urge the leadership to treat “Token Utility and Value Accrual” as a top priority for the upcoming quarter.

Do you agree? Please share your thoughts below.

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It seems the team doesn’t care about the true value of SAFE.

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Im afraid I agree in the sense that’s theres no action behind the words that they care. I’ve talked to some leadership one on one and they say they care and give reasons and evidence, but when it comes to action plans to help the toekn side of things it almost seems like they loose interest even talking about it, its kind strange to an extent.

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100% agree with everything in this post as Im sure most people will. Not sure where leadership stands ?? @lukas @adamhurwitz.eth @LuukDAO

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I find it disheartening that the leadership at Safe has lost their passion for their work; Safe used to be one of the most meaningful projects.