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GIP: 29 title: Spin-off safeDAO and Launch SAFE Token authors: Lukas Schor, Richard Meissner, Christoph Simmchen, Tobias Schubotz status: phase 2 type: meta created: 2022-02-09
- Spin-off the Gnosis Safe project from Gnosis Ltd, similar to the CowSwap spin-off
- Create a SAFE Token to govern the Gnosis Safe ecosystem and infrastructure through the establishment of an independent SafeDAO.
- Setup the independent Safe Foundation in Switzerland to protect strategic off-chain assets (IP, Github repositories, strategic investments), issue the SAFE Token, and foster the Gnosis Safe ecosystem.
Gnosis Safe has become critical infrastructure for Web3, safeguarding digital assets for DAOs, institutions, collectives and individuals. Gnosis Safe users manage, in self-custodial manner, $100B worth of assets (source, Feb 7, 2022) on Ethereum Mainnet alone. This signifies a major milestone towards smart contract account adoption. In order to get Gnosis Safe to the next level, an ecosystem should be established around this new account standard.
In order to enshrine Gnosis Safe as a community-owned project, we should launch the SAFE governance token. Introducing the SAFE Token establishes Gnosis Safe as a public good and community-owned account standard. The spin-off will also enable the Gnosis Safe project to have an even stronger focus on its mission: increase adoption of smart-contract-based accounts.
If the community votes in favor of this proposal, SAFE Tokens will be distributed to stakeholders of the Safe ecosystem interested in shaping the future of smart-contract accounts.
The SAFE Token will be used to govern and curate essential infrastructure components of the Safe ecosystem, including:
- Safe Deployments (core smart contract deployments across multiple networks)
- Curation of “trusted lists” (Token lists, dApp lists, module lists)
- Decentralized hosting of a Safe frontend using the safe.eth domain
- Decentralized hosting of governance frontends
- ENS names
- Outstanding SAFE Token supply
- Other Safe Treasury assets (NFTs, tokens, etc.)
- Ecosystem reward programs
- User rewards
- Value capture
- Future token utility
By giving control over the core components of the Safe ecosystem to the SAFE Token holders, the SafeDAO is enabled to introduce value capture and reward programs that supercharge the Gnosis Safe ecosystem flywheel. Important: The visualisation does not constitute the tokenomics, but rather just showcases areas where token mechanisms can be implemented.
At genesis, 1 billion SAFE Tokens will be minted by the Safe Foundation. The SAFE Token has a fixed token supply.
The total supply of SAFE Tokens will be distributed as follows.
Relative shares of the circulating token supply (left) and full 8 year token release schedule (right).
As part of the SAFE Token distribution, 20% of the total supply will go to the benefit of GNO holders.
15% will be vested to the GnosisDAO Treasury over 4 years. As this is a significant share and to prevent governance centralization of the SafeDAO, the following commitments are given:
- GnosisDAO should not have >7% of the circulating supply
- If the liquid ownership stake of GnosisDAO surpasses 7%, it must further distribute it, by selling, issuing to GNO holders or other means.
- SAFE Tokens should be used to decentralize GNO holder structure
- When tokens are issued to GNO holders, this should be done via a lockdrop rather than a retrospective airdrop. This guarantees that tokens are directly used to attract new GNO holders rather than just reward past holders.
Joint GnosisDAO <> SafeDAO Treasury
5% will be allocated to a joint treasury, controlled by the GnosisDAO and SafeDAO in a 2-out-of-2 Multisig. This joint treasury will be used for rewards that are in the mutual interests of the Safe and Gnosis communities. For example, rewarding Gnosis Safe users on Gnosis Chain leading for increased adoption of both.
GnosisDAO will remain a significant stakeholder of the newly formed SafeDAO. GnosisDAO will benefit from Gnosis Safe’s success and maintain a significant governance share in the Gnosis Safe ecosystem. Even though the Gnosis Safe team and the GnosisDAO will become seperate entities, they will maintain a mutually beneficial relationship and aligned goals. This is further established using the SAFE Token shares vesting into the GnosisDAO Treasury and Joint Community Treasury. Together, both communities will work towards the vision of making Gnosis Safe the primary account on Gnosis Chain and inspire other chains to embrace smart contract accounts.
The plans outlined in this proposal are subject to discussion and change. They may also need to be (re)structured to take account of legal, regulatory, or technical developments as well as governance considerations. This document should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in any transactions. You are solely responsible for your own investment decisions and transactions.