[SEP #21] SAFE Token Utility

The proposal was just updated to incorporate feedback from the community (ideas that were proposed in the current thread, this thread (proposal in phase 0), and during the prior community call). Concretely the following text was added under “c. Community Involvement“ that is part of the section “Existing & Proposed Token Utility”:

Initial Feedback

Below summarizes some early themes identified from community feedback on the proposal, as posted on the SafeDAO forum and discussed during a community call. They narrow down the strategic focus into more concrete ways how the SAFE token can obtain additional utilities. A thorough analysis is required to take into account legal, regulatory, technical and feasibility considerations before any implementation. Any explorations of token utility should be merely seen as preliminary conceptual ideas, which are likely to be subject to substantial change, as token utilities could also be explored beyond the ones mentioned in this SEP as long as they fall into the SAFE token utility design space defined above. There is NO guarantee and NO warranty that any of the mentioned utilities are being explored and/or being implemented in the future.

Canonical DeFi features / modules
An area to explore is use cases that link DeFi modules to SafeDAO. Currently there are over $100bn in assets stored on Safes, and DeFi modules could enable asset owners to use their assets more productively. Potential examples include canonical swap, stake, bridge, stablecoin or flashloan modules. Through those modules, the abundant liquidity could be tapped into by others, and an Ecosystem Contribution similar to the one proposed in the Fee Engine link back to SafeDAO.

SAFE Staking
This idea suggests that the proposed activity program for the Safe ecosystem, which involves locking SAFE tokens, could potentially evolve into a form of staking. As the abstraction layers are being built out, different components will have the need for economic security to be provided through staking mechanisms. This could allow SAFE token holders to engage in various staking opportunities as they develop within the ecosystem. A framework could be developed which, similar to restaking, enables SAFE holders to choose among different staking mechanisms, possibly even simultaneously participating in different security models. The different available staking mechanisms could be governed by SafeDAO via an onchain registry, ensuring that they are aligned with SafeDAO’s interest and security standards.

As a reminder, we’ll be hosting another community call later today to discuss the proposal. We are looking forward to your participation! Details:

  • Time:16:00-17:00 UTC
  • The call will be hosted on Discord. Sign up here