Safe Proposes Airdrop for 22K Users
Early Users Have Been Allocated 5% Of The SAFE SupplyDeFi News
Safe, the protocol recently rebranded and spun off from parent company Gnosis, announced plans to airdrop its SAFE token to almost 22,000 crypto wallets.
The average user to receive SAFE tokens will get a little more than 2,200, according to the proposal published Thursday. Its author, Safe co-founder Tobias Schubotz, has called for community feedback before putting the proposal to a vote.
The protocol allows users to create Safes — smart contract crypto wallets that require multiple signatures to verify transactions. Such redundancy makes it less likely an individual would compromise their crypto holdings or that a rogue employee could make off with the assets in a company’s treasury.
Safe users – a group that includes Bitfinex, BitDAO and Vitalik Buterin – manage more than $38B in assets, according to data from Dune Analytics. Originally known as Gnosis Safe, it split from Gnosis earlier this year and announced a $100M funding round in July, led by venture capital firm 1kx.
Proposed SAFE Token Distribution
The total supply of SAFE is 50M tokens, 60% of which will go toward treasuries of the DAOs that run Safe and Gnosis. Another 15% is allocated to current and future Safe employees, 15% to the Safe Foundation, which manages the project’s grants program, 5% to ecosystem incentives and 5% for rewarding early adopters.
Gifting former users via airdrop has proven to be fraught with challenges. Dishonest users, known as airdrop farmers or sybil attackers, can game distribution criteria to receive tokens that would otherwise go to early users who helped it grow and mature.
As has happened ahead of other airdrops, some in the Safe community debated the measures that had been taken to protect the integrity of the distribution.
Only Safes created on Ethereum mainnet before Feb 9, 2022, will be eligible for the airdrop, according to the proposal. Safes created on Ethereum scaling protocols such as Optimism and Arbitrum — whose users enjoy faster transaction times and much lower transaction fees — will not get any tokens.
This restriction “seems brutal,” pseudonymous user PhiMarHal wrote on Safe’s governance forum. “As stated, I think the plan would fall short of its first bullet point – ‘decentralize through wide distribution.’”
Others disagreed, arguing that mainnet use drove Safe adoption.
Additional criteria determine how much SAFE eligible users could receive. User R_NearPad took issue with allocating SAFE based on the amount of Ether held over time in a Safe contract, as many of the protocol’s users created such contracts to store other digital assets, such as NFTs.
User exa256 suggested taking stable coins into account, given their easy-to-value nature and broad use throughout the crypto ecosystem.
First called Gnosis Multisig, Safe was built in 2017 so that the Gnosis team had a means of securely storing its own digital assets. Since then, nearly 90,000 Safes have been created on the Ethereum mainnet.