June 2023 Vote to Enable SAFE Token Transferability
Author: Adrian Hacker firstname.lastname@example.org
Created: June 4th, 2023
This is an official proposal from the community to the community to enable the transferability of the SAFE token for the second time.
SAFE tokens became eligible for claiming around eight months ago but transferability of the token was locked as a function of the smart contract. Presumably so that token dumping would not crash any potential value the token would have initially. This was also around the time that the crypto exchange FTX went insolvent and there was generally a lot of fear and paranoia in the cryptocurrency market which could have adverse effects on any initial value that the SAFE token had by default.
SEP#2 has been put to the community regarding enabling the transferability of SAFE tokens and the community voted to hold off on making safe tokens transferable. SEP#3 came shortly after which was a vote to establish some milestones to be completed prior to enabling token transferability. These milestones are as follows:
- Milestone A: The claim period has passed. - Complete
- Milestone B: An SEP on a constitution has been ratified. - Complete
- Milestone C: An SEP on governance framework has been ratified. – In Process but not showing a lot of momentum.
- Milestone D: An SEP on a resource allocation framework has been ratified. – In process. SAFE grants program has been approved.
- Milestone E: An SEP on token utility has been ratified. – In process. Discussions have happened, but this shows limited movement at present.
Override these requirements and enable transferability of the SAFE token at this time.
Not a DAO if there is no path to Access:
With SAFE tokens as the primary mechanism for participating in governance, having them locked gives no on ramp for those that want to participate in the governance of the SAFE and no off ramp for those that are holding the token as early adopters or contributors. The five requirements that are supposed to be met are very high-level items that essentially define all aspects of how SAFE will operate. With token transferability locked, that creates a central entity in charge of this and takes away all decentralization. Participants or would-be participants are blocked from coming in and helping to create and define this wonderful mechanism for holding and protecting blockchain valuables.
Nature Will Take its Course:
Regarding the value of the SAFE token, whether it is now or later, the value will do what it is going to do. That decision is for the ‘market’ and the ‘market’ alone. Without the token utility fully defined, it is still the key to participating in the governance of the SAFE. That utility alone should be enough. An accessible voting token is the foundation of DAO architecture.
Just like a token can lose value quickly upon its introduction to the market, it can also build value over time. Market sentiment does a lot of good things and that potential value capture is being missed at this time. Limited accessibility at first could benefit how the market values the SAFE token CAP. Markets are fickle though and so are people and attention spans are not getting any longer in this day and age.
Discussion on the Forum and Snapshot:
This proposal should get immediate attention and assigned as a formal SEP and posted to snapshot as soon as possible. I do not have the 20,000 tokens required for posting. If this is truly a decentralized autonomous organization, then enabling token transferability should not even be a question after this amount of time has elapsed. At the rate the five milestones are reaching completion they are not practical milestones to decide SAFE token transferability and it was likely not known at the time of SEP#3 exactly what the velocity of these workflows would be. Token transferability adds incentive and pressure to the creation of policies and practices where incentive and pressure were not meant to exist.
Option A – Override SEP#3 and enable SAFE token transferability now.
Option B – Do not override SEP#3 and do not enable SAFE token transferability now.
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